Bloomberg News

Forties Crude Fails to Trade; Nigeria to Boost Qua Iboe Exports

June 22, 2012

No bids or offers were made for North Sea Forties and Russian Urals crude in Europe. Socar Trading SA failed to sell Azeri Light at a lower price than the last trade.

Nigeria, Africa’s largest oil producer, plans to increase benchmark Qua Iboe crude exports in August to 12 cargoes, one more than July, according to a loading schedule obtained by Bloomberg News.

North Sea

Reported 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 60 cents a barrel less than Dated Brent, the lowest since April 24, compared with a discount of 55 cents yesterday, data compiled by Bloomberg show.

Forties was last sold at a discount of 60 cents a barrel to Dated Brent on June 20, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

Brent for August settlement traded at $90.44 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $90.49 yesterday. The September contract was at $90.72, a premium of 28 cents to August.

Mediterranean/Urals

Urals was at $1.80 a barrel less than Dated Brent in northwest Europe, compared with a discount of $1.65 yesterday, according to the Bloomberg data.

Socar Trading SA failed to sell 600,000 barrels of Azeri crude for July 7 to July 11 loading from Turkey’s Ceyhan or Georgia’s Supsa at $2.30 a barrel more than Dated Brent on a delivered basis to Augusta, Italy, compared with a premium of $2.50 for the last trade on June 20, the survey showed.

OAO Surgutneftegas sold 140,000 metric tons of Urals via a tender to Eni SpA for July 4 to July 5 loading from Novorossiysk on the Black Sea, said two traders who participate in the market.

PT Pertamina bought three crude cargoes totaling 1.8 million barrels from Algeria and Libya for delivery in August, according to a company official, who asked not to be identified because the information is confidential.

Pertamina bought 600,000 barrels of Libya’s Amna crude for its Cilacap refinery, and 600,000 barrels each of Libya’s El- Sharara and Algeria’s Saharan Blend for its Balikpapan facility.

West Africa

Vitol didn’t manage to sell 950,000 barrels of Nigerian Escravos for July 10 to July 15 delivery to Rotterdam or Lavera, France, at $4 a barrel more than Dated Brent, the survey showed.

Nigeria will export eight shipments of Agbami, four Escravos, three Yoho, two Okwori and one Antan, separate plans show. Agbami and Okwori cargoes are of 975,000 and 650,000 barrels each respectively, while the other grades are shipped in 950,000-barrel lots.

Hindustan Petroleum Corp. issued a tender to buy crude for loading on Aug. 1 to Aug. 10, according to a document obtained by Bloomberg News.

The tender closes at 3 p.m. local time on June 25 and offers remain valid until 8 p.m. the following day.

Qua Iboe was at $1.39 a barrel more than Dated Brent, the lowest since May 1, compared with a premium of $1.41 yesterday, data compiled by Bloomberg show.

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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