Bloomberg News

Morgan Stanley Cuts Forties Offer; Force Majeure on Qua Iboe Oil

November 21, 2012

Morgan Stanley failed to sell a cargo of North Sea Forties crude even after lowering its offer. No bids or offers were made for Russian Urals blend in Europe for a third day.

Exxon Mobil Corp. declared force majeure on Nigerian Qua Iboe loadings because of repair works on a pipeline following an oil leak on Nov. 9, the company said today in an e-mailed statement. CPC Corp. bought four cargoes of Angolan Cabinda and two of Nemba for loading in January, according to three traders with knowledge of the matter.

North Sea

Morgan Stanley failed to sell the Forties for loading Dec. 8 to Dec. 10 at 10 cents a barrel less than Dated Brent, down from its offer yesterday at a premium of 10 cents for the same shipment dates, according to a Bloomberg survey of traders and brokers monitoring the Platts window. A lot for Dec. 4 to Dec. 6 traded in the previous session at a discount of 25 cents.

Mercuria Energy Trading SA was unable to sell a cargo for loading on Dec. 6 to Dec. 8 at 15 cents less than Dated Brent, while Vitol Group didn’t find buyers for a consignment for Dec. 3 to Dec. 5 at a discount of 30 cents, 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 8 cents less than Dated Brent, compared with a premium of 4 cents yesterday, data compiled by Bloomberg show.

Brent for January settlement traded at $110.42 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $110.05 yesterday. The February contract was at $109.59, a discount of 83 cents to January.

Statoil ASA booked a supertanker to haul North Sea crude to South Korea, boosting the tally this year to 48 million barrels, according to shipbroker reports.

Statoil chartered the very large crude carrier Samco Scandinavia to load on Dec. 15 from Mongstad, Norway, at a cost of $5.75 million, according to four fixture lists including from Athens-based Optima Shipbrokers Ltd. Mongstad is the loading terminal for Norwegian Troll and Heidrun blends. This is the first tanker booked for December and compares with two scheduled for this month.

Mediterranean/Urals

Urals was unchanged at 90 cents a barrel less than Dated Brent in the Mediterranean, according to data compiled by Bloomberg.

Russia will reduce Urals shipments from three ports in early December, according to a partial loading schedule obtained by Bloomberg News.

Exports from the Baltic port of Primorsk will be cut to 15 cargoes of 100,000 metric tons each from Nov. 30 to Dec. 11, six less than a month earlier, the program showed.

Russia will ship four lots of 140,000 tons and five of 80,000 tons from Novorossiysk on the Black Sea in the same period, the plan showed. This totals 960,000 tons, compared with 1.32 million tons a month earlier. Siberian Light loadings from this port will be unchanged at one cargo of 80,000 tons, according to the program.

Exports of Urals from the Baltic port of Ust-Luga will be seven cargoes of 100,000 tons each from Dec. 1 to Dec. 11, one less than a month earlier, according to the schedule.

West Africa

Qua Iboe fell 2 cents to $1.77 a barrel more than Dated Brent, according to data compiled by Bloomberg.

Royal Dutch Shell Plc lifted its force majeure on Bonny Light exports from Nigeria at 9 a.m. local time today, while maintaining its halt on shipments of Forcados grade, a company official said.

Nigeria raised its December official selling price for benchmark Bonny Light and Qua Iboe crudes to the highest level in six months, the Nigerian National Petroleum Corp. said in an e-mailed statement.

The two grades were set at $1.90 a barrel more than to Dated Brent, the most since June and compares with a premium of $1.80 for this month, according to the list.

Sonangol Holdings, Chevron Corp., China International United Petroleum & Chemical Corp., known as Unipec, and PetroChina Co. were awarded the Cabinda lots from CPC, the traders said, declining to be identified as the information is confidential. Sonangol also sold the two Nemba shipments.

PT Pertamina bought 950,000 barrels of Nemba crude for January delivery via a tender, according to a company official who asked not to be identified because of internal policy.

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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