Bloomberg News

BP Offers Urals Crude; Rosneft Issues April-to-September Tender

March 13, 2012

BP Plc (BP/) failed to sell Russian Urals blend in northwest Europe at a lower price. No bids or offers were made for North Sea Forties (EUCSFORT) crude for the second day.

OAO Rosneft issued a tender to sell Urals crude for loading from April to September from two ports, according to three traders who participate in the market.

North Sea

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 $1.37 a barrel more than Dated Brent (EUCRBRDT), compared with $1.51 yesterday, according to data compiled by Bloomberg.

Forties last traded at a premium of $1.95 to benchmark Dated Brent on March 8.

Brent for April settlement traded at $126.43 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $125.32 yesterday. The May contract was at $125.91, a discount of 52 cents to April.

Mediterranean/Urals

BP didn’t manage to sell 100,000 metric tons of Urals for March 31 to April 4 delivery to Rotterdam at $1.75 a barrel less than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. On March 9, BP sought to buy at a discount of $1.60 without success.

No bids or offers for Urals were made in the Mediterranean. Yesterday, Glencore International Plc bought 80,000 tons of the grade for March 22 to March 26 delivery to Augusta, Italy, from Tenergy Trading at $1.95 a barrel less than Dated Brent.

Urals (EUCSURMD) was at $1.67 a barrel less than the benchmark in the Mediterranean, up from yesterday’s two-month low of a discount of $1.91, according to data compiled by Bloomberg.

Rosneft offered to sell as much as 7.2 million tons of the blend for loading from the Baltic Sea port of Primorsk, said the people, who declined to be identified because they aren’t authorized to speak on the matter.

The producer also offered as much as 2.52 million tons of Urals in 140,000-ton lots and 2.4 million tons in 80,000-ton shipments from Novorossiysk on the Black Sea, the people said. The tenders will be awarded on March 15.

Iran cut most of its official selling prices for April crude supplies to northwest Europe and the Mediterranean, said an official at National Iranian Oil Co. in Tehran who asked not to be identified, citing company policy.

West Africa

Bharat Petroleum Corp. is scheduled to award its tender for crude for loading from April 16 to April 30 tomorrow, according to a document obtained by Bloomberg News.

Qua Iboe (AFCSQUA1) crude was at $2.67 a barrel more than Dated Brent, compared with $2.72 yesterday, according to data compiled by Bloomberg.

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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