Bloomberg News

BP Sells Forties Crude at Higher Price; Socar Offers Azeri Light

August 01, 2012

BP Plc sold a cargo of North Sea Forties crude at a higher price than the previous deal. No bids or offers were made for Russian Urals in Europe. Socar Trading SA failed to sell Azeri Light in the Mediterranean.

Production of Forties blend is forecast to increase to 435,700 barrels a day in November, 9 percent more than 398,400 barrels in October, according to data from BP.

North Sea

BP sold Forties cargo F0810 for Aug. 20 to Aug. 22 loading to Vitol Group at 15 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. This compares with a cargo Vitol bought yesterday at a premium of 10 cents.

Total SA failed to buy the blend for Aug. 23 to Aug. 27 at 10 cents a barrel more than Dated Brent, the survey showed.

Trafigura Beheer BV didn’t manage to sell lot F0811 for loading on Aug. 21 to Aug. 23 at 25 cents more than Dated Brent, according to the survey. The cargo was brought forward by one day, two traders with knowledge of the shipping program said.

BP failed to sell Ekofisk for Aug. 11 to Aug. 13 at 75 cents a barrel more than Dated Brent, according to the survey.

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 3 cents a barrel less than Dated Brent, compared with parity yesterday, data compiled by Bloomberg show.

Brent for September settlement traded at $106.21 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $105.55 yesterday. The October contract was at $104.95, a discount of $1.26 to September.

The share of Buzzard crude in the Forties blend rose to 50 percent in the week to July 29, up from 49 percent a week earlier, BP said.

Mediterranean/Urals

No bids or offers were made for the crude in the Mediterranean for a 10th session. The blend was at 20 cents a barrel more than Dated Brent, compared with a premium of 17 cents yesterday, according to data compiled by Bloomberg.

Socar failed to sell 600,000 barrels of Azeri Light for Aug. 16 to Aug. 20 at $3.30 a barrel more than Dated Brent, the survey showed.

The Caspian Pipeline Consortium said oil shipments through its terminal at Novorossiysk fell in July. The terminal pumped 2.558 million metric tons, or 20.2 million barrels, down 2.6 percent from 2.625 million a year earlier, CPC said.

West Africa

Indian Oil Corp. issued a tender to buy crude for loading in October, a document obtained by Bloomberg News showed.

The tender closes at 3 p.m. local time on Aug. 6 and offers will be valid until 5 p.m. the following day, according to the document.

PT Pertamina is scheduled to award a tender for crude for October delivery tomorrow.

Qua Iboe for loading from Nigeria rose 4 cents to $1.25 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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