Bloomberg News

Morgan Stanley Buys Forties Crude; September Exports to Plunge

August 07, 2012

Morgan Stanley bought a North Sea Forties crude cargo at the highest price in four months after a loading program showed exports of the blend for September will drop to the lowest in at least five years. No bids or offers were made for Russian Urals in Europe.

Shipments of Brent, Forties, Oseberg and Ekofisk, which make up the Dated Brent benchmark, will total 720,000 barrels a day, the lowest level since August 2007, when Bloomberg started compiling the data, according to shipping plans obtained by Bloomberg News. That’s 7 percent less than 774,194 barrels a day in August.

North Sea

Morgan Stanley bought Forties shipment F0815 for Aug. 29 to Aug. 31 loading from Trafigura Beheer BV at 60 cents a barrel more than Dated Brent, the highest since April 5, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. That compares with a premium of 45 cents for a trade yesterday.

Total SA failed to buy the blend for Aug. 26 to Aug. 31 at 55 cents more than Dated Brent, the survey showed.

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 unchanged at 44 cents a barrel more than Dated Brent, the highest since July 16, data compiled by Bloomberg show.

Brent for September settlement traded at $111.55 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $109.02 yesterday. The October contract was at $109.93, a discount of $1.62 to September.

Exports of Forties crude for September are planned at 10 cargoes of 600,000 barrels each, five less than August, according to a loading program.

Loadings of Alvheim crude for September will be unchanged from this month at five cargoes of 780,000 barrels each, a separate shipping schedule showed.

The share of Buzzard crude in the Forties blend increased to 65 percent in the week to Aug. 5, up from 50 percent a week earlier, BP Plc (BP/) said today on its website.

BP’s Unity Riser oil and natural gas facility in the U.K. North Sea may return today after shutting on Aug. 1 for planned maintenance, company spokesman Mark Salt said by telephone from Aberdeen, Scotland.

Statoil ASA (STL) plans maintenance at its Troll A oil and natural gas field in Norway in September, spokesman Ola Anders Skauby said in an e-mail, without specifying dates.

Mediterranean/Urals

Urals rose 3 cents to a premium of 43 cents a barrel to Dated Brent in the Mediterranean, according to data compiled by Bloomberg.

One cargo of 80,000 metric tons of Siberian Light crude was added to the loading program for July from Russia’s Black Sea port of Novorossiysk, two traders with knowledge of the shipping plan said.

The shipment, owned by OAO Gazprom, was for loading on July 30 to July 31, said the people, who declined to be identified because the information is confidential. It raised total exports from the port last month to 3.56 million tons, including 3.16 million tons of Urals crude and 400,000 tons of Siberian Light, according to a loading plan.

West Africa

Nigerian benchmark Qua Iboe rose 2 cents to $1.42 a barrel more than Dated Brent, the highest since June 20, according to data compiled by Bloomberg.

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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