Bloomberg News

Total Buys Urals at 10-Month Low; Surgut Offers Ust-Luga Cargo

March 15, 2012

Statoil ASA failed to sell North Sea Forties (EUCSFORT) crude for a second day even after it lowered the price. Total SA bought Russian Urals blend in northwest Europe at the lowest price in 10 months.

OAO Surgutneftegas, Russia’s fourth-largest oil producer, issued a tender to sell Urals from the Baltic Sea terminal at Ust-Luga for loading from March 21 to March 22, said three traders who participate in the market. The tender for 100,000 metric tons will be awarded at 3 p.m. Moscow time tomorrow.

North Sea

Statoil was unable to sell a cargo of Forties for April 5 to April 7 loading at 45 cents a barrel more than Dated Brent (EUCRBRDT), lower than its offer yesterday of a premium of 60 cents, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

Royal Dutch Shell Plc failed to sell Forties for April 2 to April 4 at 35 cents more than Dated Brent, while Exxon Mobil Corp. didn’t manage to buy at parity to the benchmark for April 2 to April 7, the survey showed.

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 a barrel more than Dated Brent, compared with $1.25 yesterday, according to data compiled by Bloomberg.

Statoil halted production at its Statfjord-C platform in the North Sea after a leak of toxic gas. Statfjord-C, which has daily output of about 25,000 barrels of oil equivalent, is the only platform to be affected by the shutdown, the Stavanger- based company said in an e-mailed statement today.

Brent for April settlement traded at $123.49 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $125.84 yesterday. The May contract was at $123.03, a discount of 46 cents to April.

Mediterranean/Urals

Total bought 100,000 tons of Urals for March 31 to April 4 delivery to Rotterdam from Statoil at $2.85 a barrel less than Dated Brent, the lowest since May 5, 2011, the survey showed. Yesterday, Glencore International Plc sold a shipment for March 26 to March 30 at a discount of $2.75 a barrel to the benchmark.

OAO Lukoil failed to sell 80,000 tons of the blend for March 25 to March 29 delivery to Augusta, Italy, at $2.40 a barrel less than Dated Brent, according to the survey.

Urals (EUCSURNW) was at $2.71 a barrel less than the benchmark in northwest Europe, the lowest since May 12, compared with a discount of $1.90 yesterday, according to data compiled by Bloomberg.

Russia will ship 10 cargoes of 100,000 tons each of Urals crude from the Baltic port of Primorsk from March 31 to April 5, one more than a month earlier, according to a partial loading schedule obtained by Bloomberg News.

Russia will also export two lots of 140,000 tons and two 80,000-ton shipments from Novorossiysk on the Black Sea from April 1 to April 4, the plan shows.

OAO Rosneft sold Urals crude loading from April to September at Primorsk to Shell and Statoil, two traders who participate in the market said.

The producer also awarded 80,000-ton cargoes of the blend to Warly International and 140,000-ton cargoes to Vitol Group for shipment from Novorossiysk, according to the people.

In a separate tender, Rosneft awarded five cargoes totaling 450,000 tons of CPC Blend crude for loading from April to June to Glencore, the traders said.

West Africa

Mercuria Energy Trading SA and Itochu Corp. sold crude to Bharat Petroleum Corp. for loading in April, according to three traders who declined to be identified because they aren’t authorized to speak with the media.

The Indian company bought about 1 million barrels of Libyan Sarir crude from Itochu and about 950,000 barrels of Nigeria’s Antan oil from Mercuria, the traders said.

Bharat Petroleum issued a tender seeking to buy crude for loading from May 1 to May 15, according to a document obtained by Bloomberg News. The tender closes on March 20, with offers valid until the following day, the document shows.

Equatorial Guinea added an additional cargo of Ceiba crude to its April loading program, according to a shipping plan obtained by Bloomberg News. This brings total exports of Ceiba to three cargoes of 1 million barrels each, compared with two shipments originally, the plan shows.

The last shipment of Ghana’s Jubilee crude for April 29 to 30 will be deferred to early May, according to a separate schedule. That cuts total exports of the grade for April to two lots, including one delayed from the end of March.

Qua Iboe (AFCSQUA1) crude was at $2.67 a barrel more than Dated Brent, compared with $2.63 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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