Bloomberg News

BP Sells Forties for Second Day; Ust-Luga Urals Tender Canceled

February 27, 2012

Feb. 24 (Bloomberg) -- BP Plc sold Forties crude for a second day in the North Sea market. Russian Urals traded at a bigger discount in northwest Europe.

OAO Surgutneftegas canceled the tender for a late-February Urals cargo from the Baltic Sea port of Ust-Luga, according to three traders who participate in the market.

North Sea

BP sold a Forties cargo to Mercuria Energy Trading SA for loading on March 14 to March 16 at 85 cents more than the cash cost of North Sea crudes for April, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. BP sold another shipment yesterday at a premium of 56 cents to Dated Brent.

Morgan Stanley failed to buy a Forties consignment for March 17 to March 21 at 65 cents more than Dated Brent, compared with its purchase yesterday at a 95-cent premium.

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 75 cents a barrel more than Dated Brent, up from 63 cents yesterday, according to data compiled by Bloomberg.

Brent for April settlement traded at $123.87 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $123.26 yesterday. The May contract was at $122.77, a discount of $1.10 to April.


Vitol Group sold Statoil ASA 100,000 metric tons of Urals for March 5 to March 9 delivery to Rotterdam at 90 cents less than Dated Brent, the survey showed. That’s a wider discount than trades at Dated minus 85 cents and 55 cents yesterday. There were no bids or offers for the blend in the Mediterranean.

Surgutneftegas canceled the Ust-Luga tender for Feb. 27 to Feb. 28 loading, the three traders said. Glencore International Plc, which was awarded the cargo last week, will get one or two lots from Primorsk on the Baltic Sea as compensation, said the people, who declined to be identified because the information is confidential.

Surgut also sold 100,000 tons of the grade via a separate tender to Total SA for March 8 to March 9 loading from Primorsk, two traders who participate in the market said, declining to be identified because the information is confidential.

Urals was at 74 cents a barrel less than Dated Brent in northwest Europe, the lowest since Jan. 24, compared with a discount of 55 cents yesterday, according to data compiled by Bloomberg.

West Africa

Nigeria, Africa’s largest oil producer, plans to keep exports of Erha crude in April unchanged at four cargoes, according to a loading program obtained by Bloomberg News.

The country will load four Amenam cargoes, one Pennington and one shipment of Antan, separate plans show. Each consignment is 950,000 barrels.

Equatorial Guinea will increase exports of its Zafiro crude for April to four cargoes, one more than March, while the Republic of Congo will export six 920,000-barrel cargoes of Djeno crude oil, unchanged from the previous month, separate loading programs showed.

Qua Iboe crude was at $2.63 a barrel more than Dated Brent, up from $2.61 yesterday, data compiled by Bloomberg showed.

--With assistance from Jake Rudnitsky in London and Claire Borchers in London. Editors: Raj Rajendran, Rachel Graham.

To contact the reporters on this story: Lananh Nguyen in London at; Sherry Su in London at

To contact the editor responsible for this story: Stephen Voss at

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