Bloomberg News

Morgan Stanley Buys Forties Oil; Angolan October Exports to Rise

August 16, 2012

Morgan Stanley bought a cargo of Forties crude at a higher premium than the previous trade. Vitol Group failed to sell Russian Urals and Nigerian Escravos grades for a second day.

Angola, Africa’s second-largest oil producer, will increase its crude exports in October to 54 cargoes, three more than next month, according to a preliminary loading program obtained by Bloomberg.

North Sea

Phillips 66 sold the Forties cargo at a 40 cents a barrel premium to Dated Brent for loading on Sept. 2 to Sept. 4, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. That compares with a trade done on Aug. 14 at 20 cents above the benchmark.

Mercuria Energy Trading SA and Total SA both bid for one lot of the blend for loading on Sept. 5 to Sept. 7 for a second day. Mercuria was seeking to buy at a premium of 40 cents to Dated Brent, down from 50 cents yesterday.

Royal Dutch Shell Plc failed to sell a shipment of the grade for a fourth day. The company offered a cargo for loading on Aug. 30 to Sept. 1 at 20 cents less than Dated Brent. That compares with a 10 cents premium in the previous session.

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 29 cents a barrel more than Dated Brent, down from a premium of 31 cents yesterday, data compiled by Bloomberg show.

Brent for September settlement traded at $115.98 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $115.12 yesterday. The contract expires later today. The more actively traded October contract was at $114.30, narrowing the discount to September to $1.68 from $1.85 in the previous session.

Mediterranean/Urals

Vitol failed to find a buyer for 100,000 metric tons of Urals at parity to Dated Brent for loading on Aug. 28 to Sept. 1, the survey of Platts showed. The company offered at 15 cents more than Dated Brent yesterday.

No bids or offers were made for the blend in the Mediterranean. The grade fell 4 cents to 63 cents a barrel more than Dated Brent in the region, according to data compiled by Bloomberg.

Russia will ship 12 Urals cargoes of 100,000 tons each from the Baltic Sea port of Primorsk from Aug. 31 to Sept. 6, a partial loading program obtained by Bloomberg News showed.

Shipments from the Baltic port of Ust-Luga will be four consignments of 100,000 tons each over the same period, according to the schedule.

Russia will also export two lots of 140,000 tons and four 80,000 ton shipments of crude from Novorossiysk on the Black Sea from Sept. 1 to Sept. 6. One of the 80,000 ton shipments will be Siberian Light grade and the other lots will be Urals.

TNK-BP issued a tender to sell 100,000 tons of Urals for Sept. 1 to Sept. 2 loading from Ust-Luga, said two traders who participate in the market. The tender closes tomorrow.

Emirates National Oil Co. Ltd. sold about 1 million barrels of Saharan Blend crude to Hindustan Petroleum Corp., said two traders who asked not to be identified because the information is confidential.

West Africa

Vitol failed to sell a cargo of either 650,000 or 950,000 barrels of Nigeria’s Escravos crude for loading on Aug. 20 to Aug. 24 at a $2.10 more than Dated Brent, the survey showed. The shipment was offered at a $2.15 premium yesterday.

Nigerian benchmark Qua Iboe was $1.48 a barrel more than Dated Brent, 2 cents less than the previous session, according to data compiled by Bloomberg.

Angola plans to ship 51.86 million barrels, or 1.67 million barrels a day, the plan showed. This compares with 1.63 million in September.

Angola will export one consignment of Gimboa and two lots of Mondo grades in October, compared with none for September, the schedule showed.

To contact the reporter on this story: Rupert Rowling in London at rrowling@bloomberg.net 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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