Bloomberg News

BP Buys Forties Crude From Shell; Gunvor Fails to Sell Urals Oil

March 23, 2012

North Sea Forties (EUCSFORT) crude rose as BP Plc (BP/) bought a cargo from Royal Dutch Shell Plc. (RDSA)

Gunvor Group Ltd. failed to sell a shipment of Russian Urals grade in the Mediterranean.

North Sea

BP bought a consignment of Forties from Shell for loading April 10 to April 12 at a premium of 5 cents a barrel to Dated Brent (EUCRBRDT), according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. That’s more than a trade yesterday at a 30-cent discount for an early April shipment.

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 20 cents a barrel less than Dated Brent, compared with 17 cents yesterday, according to data compiled by Bloomberg. The differential moved to a discount on March 21 for the first time since Feb. 1.

Abu Dhabi National Energy Co. (TAQA), the state-run company known as Taqa, said oil that spilled from its Tern platform in waters off Scotland on March 20 has dispersed naturally. The spill was the result of a temporary upset in production while cleaning up a new well and there was no risk to the crew or the platform, the company said in an e-mailed statement.

Brent for May settlement traded at $124.98 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $122.65 yesterday. The June contract was at $124.30, a discount of 68 cents to May.

Mediterranean/Urals

Gunvor didn’t manage to sell an 80,000 metric ton shipment of Urals for delivery to Augusta, Italy, on April 2 to April 6, the survey showed. The cargo was offered at $2.50 a barrel less than Dated Brent, compared with a bid in the Mediterranean yesterday at a discount of $2.15.

The grade was at a discount of $3.15 in northwest Europe today, unchanged from yesterday, according to data compiled by Bloomberg. There were no bids or offers in the region.

West Africa

Angola, Africa’s second-biggest oil producer, is already pumping close to its maximum level amid pressure on OPEC nations to be ready to export more should international sanctions hinder supply from Iran.

“We planned to produce 1.82 million barrels a day this year, but currently we’re producing 1.75 million,” Angolan Oil Minister Jose Maria Botelho de Vasconcelos said in an interview yesterday in Luanda, the capital. “What we can offer the international market is within that bracket.”

Nigeria’s benchmark Qua Iboe (AFCSQUA1) grade dropped to a premium of $2.76 a barrel versus Dated Brent, according to data compiled by Bloomberg.

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

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


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