Bloomberg News

Statoil Sells Forties Crude at Two-Year Low; Lukoil Buys Urals

April 17, 2012

Statoil ASA sold a North Sea Forties crude cargo at the lowest spread in almost two years. OAO Lukoil bought Russian Urals blend in the Mediterranean at a bigger discount than last week.

OAO Surgutneftegas issued a tender to sell three Urals shipments for loading from two Baltic Sea ports next month, two traders who participate in the market said.

North Sea

Statoil ASA sold the Forties cargo with parcel number F0502 for May 4 to May 6 loading to Morgan Stanley at 70 cents a barrel less than Dated Brent, the lowest differential since May 14, 2010, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. This compares with a trade on April 13 at a discount of 30 cents to the benchmark.

Total SA failed to sell a cargo of the grade for May 2 to May 4 for the sixth session even after lowering its offer to 60 cents less than Dated Brent, compared with a discount of 30 cents yesterday, the survey showed.

Trafigura Beheer BV didn’t find buyers for Forties for loading on April 30 to May 2 at 50 cents a barrel less than Dated Brent, according to the survey.

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 54 cents a barrel less than Dated Brent, the lowest since Jan. 25, compared with a discount of 32 cents yesterday, according to data compiled by Bloomberg.

Brent futures for June settlement traded at $118.63 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $118.59 yesterday. The July contract was at $118.46, a discount of 17 cents to June.

Mediterranean/Urals

Lukoil bought 140,000 metric tons of Urals for April 30 to May 4 delivery to Augusta, Italy, from Vitol Group at $2.75 a barrel less than Dated Brent, according to the survey. The grade was offered at a discount of $2.10 on April 11.

Total failed to buy 100,000 tons of the blend for April 27 to May 1 delivery to Rotterdam at $3.90 a barrel less than Dated Brent, the least since April 20, the survey showed. The grade was offered at a discount of $3.40 yesterday.

Urals was unchanged at yesterday’s one-year low of a discount of $3.83 a barrel to Dated Brent in northwest Europe, according to data compiled by Bloomberg.

Surgutneftegas offered one shipment each for May 2 to May 3 and May 5 to May 6 loading from Primorsk and one for May 3 to May 4 from Ust-Luga, according to the people, who declined to be identified because they aren’t authorized to speak on the matter. The tender closes tomorrow.

The Caspian Pipeline Consortium will cut daily exports for May from the Black Sea by 6 percent from this month, according to a preliminary loading program obtained by Bloomberg News.

The group, known as CPC, will ship 23 cargoes totaling 2.419 million tons in May, the schedule showed. That’s equivalent to 18.8 million barrels, or 606,311 barrels a day, compared with 645,221 barrels for April.

West Africa

BP Plc failed to sell 950,000 barrels of Nigerian Agbami crude for loading on May 11 to May 12 at 5 cents a barrel more than Dated Brent, down 5 cents from its offer yesterday, the survey showed.

Mercuria Energy Trading SA was unable to sell 950,000 barrels of Brass River for May 11 to May 12 at $2 more than Dated Brent, according to the survey.

Indian Oil Corp. issued its second tender to buy crude for loading in June, according to a document obtained by Bloomberg News. The tender will be awarded on April 19.

CPC Corp., Taiwan’s state-owned refiner, is seeking to buy low-sulfur crude for loading in June, said two traders who participate in the market and asked not to be identified, citing company policies. Offers will be valid until April 20.

Vitol Group sold 600,000 barrels of Nigerian Qua Iboe grade for loading in June to Mangalore Refinery & Petrochemicals Ltd., said two traders who declined to be identified because the information is confidential.

Qua Iboe blend was at a premium of $1.95 a barrel to Dated Brent, the lowest since Nov. 28, compared with a premium of $2.26 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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