Bloomberg News

BP Fails to Sell Forties at Three-Week Low; Es Sider Price Falls

May 30, 2012

BP Plc failed to sell North Sea Forties crude even after reducing its offer to the lowest in three weeks. Gunvor Group Ltd. bought Russian Urals Blend at a higher price than the last trade.

Libya’s state-run National Oil Corp. cut the official selling price of its benchmark Es Sider crude for July loading by 55 cents to a premium of 30 cents a barrel to Dated Brent, the least in seven months, according to a price list obtained by Bloomberg News.

OAO Rosneft, Russia’s largest oil producer, sold seven cargoes of Urals via a tender to Vitol Group and Gunvor for June 13 to June 22 loading from the Baltic Sea port of Primorsk, said four traders who participate in the market.

North Sea

BP failed to sell the Forties cargo for shipment on June 13 to June 15 at 15 cents a barrel less than Dated Brent, the lowest since May 9, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. This compares with its offer at a 10-cent premium yesterday.

Royal Dutch Shell Plc didn’t manage to sell the grade for June 11 to June 13 at 10 cents more than Dated Brent, while Trafigura Beheer BV was unable to sell at a premium of 15 cents a barrel for June 15 to June 17, the survey showed.

Statoil ASA sought to buy the blend without success at 35 cents a barrel more than Dated Brent for June 23 to June 26, according to the survey.

Reported North Sea crude 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 6 cents a barrel more than Dated Brent, compared with a premium of 10 cents yesterday, data compiled by Bloomberg showed.

Brent for July settlement traded at $103.42 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $107.23 yesterday. The August contract was at $103.03, a discount of 39 cents to July.

Mediterranean/Urals

Gunvor bought 100,000 metric tons of Urals for delivery on June 9 to June 13 to Rotterdam from Shell at $1.95 a barrel less than Dated Brent, compared with a discount of $2.40 for the last trade on May 24, the survey showed.

No bids or offers were made for the grade in the Mediterranean. The blend was at $1.52 a barrel less than Dated Brent in the region, down 2 cents from yesterday, the Bloomberg data showed.

Trafigura failed to sell 85,000 tons of CPC blend for loading on June 11 to June 15 for the third day at $2.75 a barrel less than Dated Brent, compared with a discount of $2.50 yesterday, according to the survey.

OAO Surgutneftegas sold 100,000 tons of Urals via a tender to Gunvor for June 9 to June 10 loading from the Baltic Sea port of Primorsk, while TNK-BP sold a similar amount for June 10 to June 11 shipment from Ust-Luga to Total SA, said three traders who participate in the market.

Bharat Petroleum Corp. bought 1 million barrels of Libyan Sarir crude for loading in July from Marubeni Corp., according to three traders involved in the region’s oil.

West Africa

Nigerian benchmark Qua Iboe crude was at a premium of $1.85 a barrel to Dated Brent, up from yesterday’s $1.79, 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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