Bloomberg News

Shell Buys Forties at Higher Prices; Vitol Offers CPC Blend

April 03, 2012

Royal Dutch Shell Plc bought a second cargo of North Sea Forties (EUCSFORT) crude at a higher price for loading in the second half of the month, while offers for earlier shipments were made at a lower differential. Six consignments of the grade failed to find buyers.

No bids or offers were made for Russian Urals, while Vitol Group sought to sell a Caspian crude cargo.

North Sea

Shell bought a Forties cargo for loading on April 23 to April 25 from Trafigura Beheer BV at 40 cents a barrel more than Dated Brent (EUCRBRDT), compared with its purchase yesterday at a premium of 20 cents for a April 15 to April 17 lot, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

Total SA was unable to sell two shipments, with one at a discount of 10 cents to Dated Brent for April 12 to April 14, and the other at a premium of 50 cents for April 18 to April 20, the survey showed.

Trafigura didn’t find buyers for one April 17 to April 19 cargo at 60 cents more than Dated Brent and another at a $1 premium for April 16 to April 23 on the basis of a ship-to-ship transfer from the tanker Hildegaard, according to the survey.

Vitol sought to sell at 5 cents a barrel more than Dated Brent for April 14 to April 16 without success, while Phibro, a unit of Occidental Petroleum Corp., failed to sell a shipment for April 25 to April 27 at 50 cents more than the benchmark or a premium of 75 cents to the cash cost of North Sea crudes for June, 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 40 cents a barrel more than Dated Brent, compared with a premium of 18 cents yesterday, according to data compiled by Bloomberg.

Brent for May settlement traded at $125.50 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $124.13 yesterday. The June contract was at $124.97, a discount of 53 cents to May.

One cargo of Forties crude with parcel number F0413 will be delayed for a second time to April 23 to April 25, two people with knowledge of the export program said.

Mediterranean/Urals

Urals (EUCSURNW) was at $3.65 a barrel less than Dated Brent, unchanged from yesterday, according to data compiled by Bloomberg.

Vitol didn’t manage to sell 85,000 metric tons of CPC Blend for April 16 to April 20 delivery to Augusta in Italy at $1.15 a barrel less than Dated Brent, according to the survey.

Iraq’s semi-autonomous Kurdish region is producing about 100,000 barrels of oil a day after cutting off its crude shipments, Ashti Hawrami, the region’s minister of natural resources, said.

West Africa

Bharat Petroleum Corp. is scheduled to award its tender to buy crude for loading from May 16 to May 31 tomorrow, according to a document obtained by Bloomberg News. Last month, the company bought 1 million barrels each of Nigerian Qua Iboe and Yoho crude for May 1 to May 15 loading from Exxon Mobil.

Nigeria’s benchmark Qua Iboe (AFCSQUA1) blend was at a premium of $2.51 a barrel to Dated Brent, down 2 cents from 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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