Bloomberg News

Chevron Buys Two Cargoes of Forties; BP Restarts Valhall Field

April 10, 2012

Chevron Corp. bought two North Sea Forties (EUCSFORT) crude cargoes at higher prices, bringing its total purchases for April-loading shipments to three. No bids or offers were made for Russian Urals in Europe.

BP Plc resumed operation at its Valhall oil and natural-gas field in the Norwegian North Sea after maintenance, according to the company.

North Sea

Chevron bought one Forties cargo for April 22 to April 24 loading from Vitol Group at 35 cents a barrel more than Dated Brent (EUCRBRDT), and another for April 24 to April 26 from Royal Dutch Shell Plc at a premium of 50 cents to the benchmark, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. On April 5, a cargo for April 18 to April 20 was sold at 20 cents more than Dated Brent.

Morgan Stanley didn’t manage to buy Forties for May 1 to May 6 loading at 25 cents a barrel more than Dated Brent, the survey showed.

Trafigura Beheer BV was unable to sell Forties for April 27 to April 29 at 45 cents a barrel more than Dated Brent, while Total SA didn’t find buyers for May 2 to May 4 loading at 55 cents a barrel, according to the survey.

Total also failed to sell Forties on a ship-to-ship basis from the tankers Stena Natalita or Eagle Tuscon. It offered at 60 cents a barrel more than Dated Brent for April 20 to April 25 transfer, or a premium of 80 cents for April 24 to April 30, according to the survey.

Reported North Sea trading typically occurs during the Platts window, which typically ends at 4:30 p.m. London time. Before the session, Forties loading in 10 to 25 days was 34 cents a barrel more than Dated Brent, compared with a premium of 17 cents on April 5, according to data compiled by Bloomberg.

Brent for May settlement traded at $121.07 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $121.23 yesterday. The June contract was at $120.63, a discount of 44 cents to May.

Valhall is “back in production following the shutdown for maintenance work,” Mark Salt, a London-based spokesman for BP, said in an e-mailed response today. Output from the field started on April 7 and is at normal levels of about 40,000 barrels a day of oil equivalent, he said.

BP shut the field at the end of March to repair a compressor unit.

A Forties cargo with parcel number F0414 was delayed by one day to load from April 19., according to three people with knowledge of the export program. This brings total deferrals for this month to 10 lots.

Exports of North Sea Flotta crude will be 1.2 million barrels in May, compared with 1.3 million barrels in April, according to a loading schedule obtained by Bloomberg News.

Mediterranean/Urals

Urals (EUCSURNW) was at $2.77 a barrel less than Dated Brent in northwest Europe, compared with a discount of $3.58 in the previous session, according to data compiled by Bloomberg. The grade traded on April 5 at $2.80 less than Dated Brent for delivery to Rotterdam.

Saudi Arabian Oil Co. will supply full volumes in May to customers in Europe, unchanged from this month, according to two refinery officials with knowledge of the matter.

West Africa

Indian Oil Corp. issued its first tender to buy crude for loading in June, a document obtained by Bloomberg News showed. The tender closes on April 11 and offers are valid until the following day.

Bharat Petroleum Corp. sought to buy crude for loading from June 1 to June 15, according to a separate tender document. It closes on April 16, with offers valid until April 17.

Nigeria’s benchmark Qua Iboe (AFCSQUA1) blend was at a premium of $2.36 a barrel to Dated Brent, down from $2.45 on April 5, 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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