Bloomberg News

Trafigura Fails to Buy Forties Crude; Kirkuk Exports to Increase

October 24, 2012

Trafigura Beheer BV failed to buy North Sea Forties blend at the lowest price in almost one month. Vitol Group sold Russian Urals in the Mediterranean at a bigger discount to Dated Brent.

Eight Nigerian crude cargoes for loading in November remain unsold, said three traders involved in the region’s market. Iraq plans to increase exports of its Kirkuk grade in November from the Turkish port of Ceyhan to 24 lots, four more than this month, a loading program obtained by Bloomberg News showed.

North Sea

Trafigura didn’t manage to buy a Forties consignment for loading on Nov. 10 to Nov. 16 at 50 cents a barrel less than Dated Brent, the lowest since Sept. 28, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. The blend was last sold at a discount of 20 cents on Oct. 22.

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 19 cents a barrel less than Dated Brent, data compiled by Bloomberg show.

Brent for December settlement traded at $107.70 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $107.64 yesterday. The January contract was at $106.82, a discount of 88 cents to December.

Mediterranean/Urals

Vitol sold 80,000 metric tons of Urals for Nov. 3 to Nov. 7 loading to Glencore International Plc at $1.20 a barrel less than Dated Brent, on a delivered basis to Augusta, Italy, the survey showed. This compares with a discount of $1.15 for the last trade on Oct. 17.

Urals blend rose by 6 cents to a discount of 96 cents a barrel to Dated Brent in northwest Europe, according to data compiled by Bloomberg.

Russia’s OAO Surgutneftegas sold two cargoes of 100,000 tons of the crude for loading from the Baltic port of Primorsk to Repsol SA and Royal Dutch Shell Plc, said two traders with knowledge of the matter.

Repsol bought one lot for loading on Nov. 6 to Nov. 7 and Shell the other for Nov. 10 to Nov. 11, the people said, declining to be identified because the information is confidential.

Shipments of Kirkuk will total 13.5 million barrels, or 450,700 barrels a day, the plan showed. That compares with 431,290 barrels planned for October.

West Africa

Qua Iboe was $1.75 a barrel more than Dated Brent, down 4 cents from the previous session, according to data compiled by Bloomberg.

The majority of unsold cargoes are of the two grades, said the people who declined to be identified as the information is confidential. The speed at which the lots have found buyers is slower than normal for this time of the month, they said.

Supply uncertainties remain in Nigeria after a force majeure on Bonny Light and Forcados exports and as Total SA halted production, the traders said. Shell declared force majeure on Bonny Light and Forcados shipments on Oct. 19 following unplanned disruptions.

Nigeria lost as much as 500,000 barrels a day of output in the wake of two months of flooding that deluged oil fields in the Niger River delta and is now restarting some of the platforms.

The Republic of Congo will export six Djeno cargoes of 920,000 barrels each in December, one more than November, according to a loading program obtained by Bloomberg News.

The west African nation plans to keep exports of N’Kossa grade unchanged at two consignments of 950,000 barrels each, the schedule showed.

Ghana will ship three 950,000 barrel cargoes of Jubilee in December, including one deferred from the end of November, according to a loading program. Exports for November were revised down to two lots from three, the plan showed.

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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