Bloomberg News

Shell Sells Forties Crude; Primorsk Urals August Exports to Rise

July 25, 2012

Royal Dutch Shell Plc sold North Sea Forties crude at a one-month low. Rosneft Trading SA failed to buy Russian Urals in northwest Europe at an unchanged price from yesterday.

Russia plans to export 57 cargoes of Urals crude in August from the Baltic Sea port of Primorsk, three more than in July, according to a preliminary loading program obtained by Bloomberg News.

North Sea

Shell sold Forties cargo F0803 for Aug. 7 to Aug. 9 loading to Gunvor Group Ltd. at 55 cents a barrel less than Dated Brent, the lowest level since June 20, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. This compares with a discount of 25 cents for a trade yesterday.

Shipment F0803 was delayed by one day from the original plan, said two people with knowledge of the shipping schedule, declining to be identified because the information is confidential. That is the first August cargo to be deferred. Shell bought the lot on July 19 at a premium of 5 cents.

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 at 28 cents a barrel less than Dated Brent, the lowest since July 2, compared with parity yesterday, data compiled by Bloomberg show.

Brent for September settlement traded at $102.74 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $103.51 yesterday. The October contract was at $101.93, a discount of 81 cents to September.

Mediterranean/Urals

Rosneft didn’t manage to buy 100,000 metric tons of Urals for Aug. 10 to Aug. 14 loading at 45 cents a barrel less than Dated Brent, on a delivered basis to Rotterdam, the survey showed. This was unchanged from yesterday’s trade.

No bids or offers were made for the crude in the Mediterranean for a fifth session. The blend was at 9 cents a barrel more than Dated Brent in the region, compared with a premium of 8 cents yesterday, according to data compiled by Bloomberg.

The shipping schedule of Urals from Primorsk comprises 56 cargoes of 100,000 tons each and one of 105,000 tons. That totals 5.7 million tons, or 1.35 million barrels a day, compared with 5.38 million tons for this month, the program showed.

Urals exports from Ust-Luga on the Baltic Sea will reach a record 1.8 million tons next month, up from 1.5 million tons in July, according to the plan. The terminal started operation in late March.

Russia will ship 1.63 million tons of the benchmark blend and 160,000 tons of Siberian Light grade from the Black Sea port of Novorossiysk from July 31 to Aug. 15, the plan showed.

West Africa

Vitol Group failed to sell 950,000 barrels of Nigerian Bonny Light crude for Aug. 15 to Aug. 20 delivered to Lavera, France or Rotterdam at $2.35 a barrel more than Dated Brent, the survey showed.

CPC Corp., a Taiwan state-run oil company, bought 4 million barrels of Angolan crude for loading in September via a tender, according to four traders who participate in the market.

The company bought 3 million barrels of Cabinda and 1 million barrels of the Nemba grade, according to the people, who declined to be identified because the information is confidential. CPC awarded the tender to Chevron Corp., Sonangol Holdings and China International United Petroleum & Chemical Co., or Unipec, they said.

Qua Iboe for loading from Nigeria fell 1 cent to $1.13 a barrel more than Dated Brent, 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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