Bloomberg News

Shell Sells Forties at Lower Price; North Sea Exports to Rise

April 13, 2012

Royal Dutch Shell Plc sold a North Sea Forties (EUCSFORT) crude cargo for less than a deal yesterday. No bids or offers were made for Russian Urals in northwest Europe as the differential of the blend to Dated Brent fell to the lowest in 11 months.

Daily exports of the 12 main grades of North Sea crude for loading in May will increase by 4 percent from this month, according to loading programs obtained by Bloomberg News.

North Sea

Shell sold the Forties consignment with parcel number F0501 for May 3 to May 5 loading to Morgan Stanley at 30 cents less than Dated Brent (EUCRBRDT), according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. Yesterday, Mercuria Energy Trading SA bought one cargo for May 6 to May 8 from Shell at a discount of 5 cents.

Mercuria failed to sell the shipment it bought yesterday at a premium of 20 cents to Dated Brent, the survey showed.

Total SA was unable to sell the grade for May 2 to May 4 for the fourth day even after it lowered the offer from yesterday by 10 cents to a discount of 25 cents to Dated Brent, according to the survey.

Trafigura Beheer BV didn’t manage to sell Forties with parcel number F0411 for April 30 to May 2 at 40 cents a barrel less than Dated Brent, the survey showed. This is the second delay for the cargo. It was first deferred to April 28 to April 30, compared with an original loading period from April 14 to April 16, according to three traders who participate in the market.

Statoil ASA was unable to sell Forties for May 4 to May 6 at 15 cent a barrel more than Dated Brent, 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 17 cents a barrel less than Dated Brent, the lowest since March 23, compared with a premium of 28 cents yesterday, according to data compiled by Bloomberg.

Brent for May settlement traded at $121.38 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $120.80 yesterday. The June contract was at $120.97, a discount of 41 cents to May.

Exports of Brent, Forties, Oseberg, Ekofisk, Statfjord, Gullfaks, Alvheim, Aasgard, DUC, Flotta, Grane and Troll will total 69.3 million barrels, or 2.23 million barrels a day, the most since February, the plans showed.

Exports of Aasgard crude for May will drop to eight cargoes of 855,000 barrels each, one less than this month, a loading program obtained by Bloomberg News showed.

Loadings will total 6.84 million barrels, or 220,645 barrels a day, compared with 256,500 barrels for April, according to the plan.

Mediterranean/Urals

Tenergy Trading failed to sell 80,000 metric tons of Urals for April 23 to April 27 delivery to Augusta, Italy, for the second day. It offered at $2.90 a barrel less than Dated Brent, 30 cents lower than yesterday, according to the survey.

Urals (EUCSURNW) was $3.75 a barrel less than Dated Brent in northwest Europe, the lowest since May 3, compared with a discount of $3.60 yesterday, according to data compiled by Bloomberg.

Iraq will ship 19 cargoes of Basrah Light crude from the Persian Gulf in the second half of April, four more than the first half of the month, a loading program obtained by Bloomberg News showed.

The schedule comprises 12 cargoes of 2 million barrels each, five 1 million-barrel lots, one 1.9 million-barrel and one shipment of 630,000 barrels. Total exports from the Basrah Oil Terminal will be 31.53 million barrels, or 2.1 million barrels a day, compared with 1.54 million a day in the earlier period.

West Africa

Trafigura failed to sell 950,000 barrels of Nigerian Bonny Light crude for May 3 to May 4 loading at $2.00 a barrel more than Dated Brent, free-on-board basis, according to the survey.

Indian Oil Corp. bought 2 million barrels of Nigeria Qua Iboe from BP Plc, and 1 million barrels each of Bonga and Forcados from Trafigura via a tender, said two traders who participate in the market. All cargoes are for loading in June.

Eni SpA, which relies on Nigeria for about 10 percent of its oil and gas production, said a rebel group attacked one of its facilities in the country.

A pipeline between the Clough Creek and Tebidaba flow stations was targeted, Eni said today in a statement, without elaborating. The Movement for the Emancipation of the Niger Delta, known as MEND, claimed responsibility.

“More attacks and a full statement will follow,” Jomo Gbomo, a spokesman for MEND, said today in a statement. A well- head was also destroyed, he said.

Qua Iboe (AFCSQUA1) blend was at a premium of $2.36 a barrel to Dated Brent, up 1 cent 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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