Bloomberg News

Morgan Stanley Fails to Buy Forties After Reduced Bid

February 14, 2012

(Corrects headline and lead to show that Morgan Stanly bought North Sea Forties crude.)

Feb. 14 (Bloomberg) -- Morgan Stanley failed to buy North Sea Forties crude after it reduced its bid. OAO Lukoil sought to sell Russian Urals blend at an lower price in the Mediterranean without success.

Daily exports of the 12 main grades of North Sea crude will drop to a five-month low in March, according to loading programs obtained by Bloomberg News.

North Sea

Morgan Stanley failed to buy a Forties cargo for loading on March 4 to March 11 at 80 cents a barrel more than Dated Brent, 5 cents lower than it bid yesterday, according to a Bloomberg survey of traders monitoring the Platts trading window. Yesterday Royal Dutch Shell Plc sold a shipment at a premium of 80 cents to the benchmark.

Statoil ASA was unable to buy the blend for March 5 to March 8 at 85 cents more than Dated Brent, according to today’s survey.

Reported North Sea trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the session, Forties loading in 10 to 25 days was 95 cents more than Dated Brent, the highest since Jan. 5, up from a premium of 73 cents yesterday, according to data compiled by Bloomberg.

Brent for March settlement traded at $117.75 a barrel on the London-based ICE Futures Europe exchange at the close of the window, down from $118.45 yesterday. The April contract was at $117.06, a discount of 69 cents to March.

Exports of Brent, Forties, Oseberg, Ekofisk, Statfjord, Gullfaks, Alvheim, Aasgard, DUC, Flotta, Grane and Troll will total 66.8 million barrels, or 2.15 million barrels a day, the lowest since October, the plans show. That’s down 4.9 percent from shipments of 2.27 million barrels a day this month.

Loadings of Aasgard crude for March will drop to seven cargoes of 855,000 barrels each, two less than this month, according to a loading program.

Mediterranean/Urals

Lukoil failed to sell 80,000 metric tons of Urals for Feb. 24 to Feb. 28 delivery to Augusta, Italy, at parity to Dated Brent, the survey showed. The grade was last bid at a premium of 55 cents on Feb. 9.

No bids or offers were made for Urals in northwest Europe. Yesterday Lukoil failed to buy Urals for Feb. 28 to March 3 delivery to Rotterdam at 10 cents a barrel more than Dated Brent.

The grade was at 50 cents a barrel more than Dated Brent in the Mediterranean, the highest since Dec. 16, compared with 45 cents yesterday, according to data compiled by Bloomberg.

West Africa

Qua Iboe crude was at $2.58 a barrel more than Dated Brent, up from $2.53 yesterday, data compiled by Bloomberg showed.

--With assistance from Helena Athanasiou in London. Editors: Rachel Graham, Raj Rajendran

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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