Bloomberg News

BP Buys Urals Crude at 12-Week High; Forties Fails to Trade

May 18, 2012

BP Plc bought a cargo of Russian Urals crude in northwest Europe at a 12-week high, the first trade in more than one month. North Sea Forties failed to change hands in the absence of bids and offers.

TNK-BP, the Russian oil producer half-owned by BP Plc, issued a tender to sell 100,000 metric tons of Urals for loading on May 26 to May 27 from the Baltic Sea port of Primorsk, two traders who participate in the market said.

North Sea

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 18 cents a barrel more than Dated Brent, the highest since April 12, compared with a premium of 17 cents yesterday, data compiled by Bloomberg showed.

Total SA bought a shipment of Forties yesterday from Trafigura Beheer BV for loading on June 7 to June 9 at 40 cents a barrel more than Dated Brent, the highest traded price since April 11, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

Brent for July settlement traded at $107.18 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $108.46 yesterday. The August contract was at $106.56, a discount of 62 cents to July.

Three cargoes of Alvheim blend for loading in the second half of June and early July were deferred by one to four days, a revised loading program obtained by Bloomberg News showed.

The cargo originally planned for June 17 to June 19 will be deferred by two days, while the last shipment for next month will be loaded on June 27 to June 29, four days later than planned, according to the schedule.

The first shipment for July will be delayed by one day to July 3 to July 5, the program showed.

Mediterranean/Urals

BP bought 100,000 tons of Urals for May 28 to June 1 loading from Gunvor Group Ltd. at $1.20 a barrel less than Dated Brent, the highest price since Feb. 24, the survey showed. The grade last traded at a discount of $3.75 on April 12.

No bids or offers were made for Urals in the Mediterranean. The blend was at 30 cents a barrel less than Dated Brent in the region, the highest since Feb. 22, compared with a 32-cent discount yesterday, data compiled by Bloomberg showed.

TNK-BP sold two cargoes of the blend with a combined volume of 240,000 tons to Vitol Group, two traders involved in the region’s oil said.

Vitol bought one 100,000-ton shipment for June 1 to June 2 loading from Ust-Luga on the Baltic Sea, and another 140,000 tons for June 4 to June 5 from the Black Sea port of Novorossiysk, according to the people, who declined to be identified because the information is confidential.

OAO Surgutneftegas sold 100,000 tons of Urals for June 3 to June 4 from Ust-Luga to BP via a separate tender, they said.

West Africa

Bharat Petroleum Corp. issued a tender to buy crude for loading from July 21 to July 31, according to a document obtained by Bloomberg News.

The tender closes on May 28, with offers valid until the following day, the document showed.

Qua Iboe was at a premium of $1.86 a barrel to Dated Brent, down from a premium of $1.88 yesterday, 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


Tim Cook's Reboot
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus