Bloomberg News

Vitol Sells Forties Crude at 1-Month High; Urals Fails to Trade

May 11, 2012

Morgan Stanley bought a shipment of North Sea Forties crude from Vitol Group at the highest price in a month. No bids or offers were made for Russian Urals for the second day.

Three supertankers were booked to haul North Sea crude for loading in May to South Korea, the most since January, according to tanker reports and ship-tracking data from IHS Inc.

North Sea

Morgan Stanley bought the cargo of Forties for loading on May 27 to 29 from Vitol at parity to Dated Brent, the highest since April 11, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. The grade was last sold at a discount of 60 cents to the benchmark on May 9.

Total SA failed to buy a consignment for May 31 to June 4 loading at 10 cents more than Dated Brent, while Mercuria Energy Trading SA didn’t find sellers for a June 4 to June 9 shipment at a 20-cent premium to the benchmark, 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 1 cent a barrel more than Dated Brent, the highest since April 12, compared with a discount of 22 cents yesterday, according to data compiled by Bloomberg.

Brent for June settlement traded at $112.65 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $112.66 yesterday. The July contract was at $112.21, a discount of 44 cents to June.

Total SA’s natural gas leak at the Elgin field in the North Sea could cost hundreds of millions of dollars in lost production through the end of the year, according to Chief Executive Officer Christophe de Margerie.

The French company isn’t counting on output at the Elgin and Franklin fields to restart “significantly” until the end of 2012, resulting in lost production of $300 million to $400 million, de Margerie told shareholders at a meeting in Paris.

Mediterranean/Urals

Urals was at 60 cents a barrel less than Dated Brent in the Mediterranean, unchanged from yesterday’s 11-week high, according to data compiled by Bloomberg. The blend last traded at a discount of 60 cents in the region on May 9.

OAO Surgutneftegas sold 100,000 metric tons of the crude via a tender to Glencore International Plc for loading on May 27 to May 28 from the Baltic Sea port of Ust-Luga, said two traders who participate in the market.

West Africa

Petrolin Trading Ltd. sold 650,000 barrels of Gabon’s Rabi Light crude for loading on June 12 to June 13 to Sunoco Inc., said two traders involved in the region’s oil.

Qua Iboe was at a premium of $1.98 a barrel to Dated Brent, up from a premium of $1.83 yesterday, the Bloomberg data showed.

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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