Bloomberg News

BP Sells Russian Urals Crude; Exxon Lifts Qua Iboe Force Majeure

December 10, 2012

BP Plc sold a cargo of Russian Urals crude to Trafigura Beheer BV in northwest Europe at a higher price than the previous trade. OAO Lukoil canceled two export lots of the grade from the Baltic port of Primorsk, said two traders with knowledge of the matter.

Exxon Mobil Corp. lifted its force majeure on Qua Iboe crude loadings from Nigeria, Africa’s largest oil producer, a company official said.

North Sea

There were no bids, offers or deals reported in the North Sea market for the second session, according to a survey of traders and brokers monitoring the Platts pricing window.

Total SA bought Forties lot F1110 for loading Dec. 27 to Dec. 29 from Mercuria Energy Trading SA at 40 cents a barrel more than Dated Brent in the last trade on Dec. 6.

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 fell 3 cents to 38 cents more than Dated Brent, according to data compiled by Bloomberg.

Brent for January settlement traded at $107.95 barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $106.96 on Dec. 7. The February contract was at $106.88, a discount of $1.07 to January.

Mediterranean/Urals

Trafigura bought the 100,000 metric ton consignment of Urals on a delivered basis to Rotterdam, the survey showed. The shipment traded at a $1.10 a barrel discount to Dated Brent, compared with a Nov. 30 trade at minus $1.20.

Lukoil, Russia’s second-biggest oil company, canceled shipments of 100,000 tons each for loading Dec. 20 to Dec. 21 and Dec. 24 to Dec. 25, the people said, asking not to be identified because the information is confidential.

Royal Dutch Shell Plc canceled an 80,000 ton lot of Urals for loading Dec. 13 to Dec. 14 from the Black Sea port of Novorossiysk, the traders said. The Shell consignment was due to be shipped by Salym Petroleum, its west Siberian venture with OAO Gazprom Neft, they said.

The Urals differential to Dated Brent in the Mediterranean was unchanged for a third day at a discount of 60 cents, according to data compiled by Bloomberg.

West Africa

Exxon removed the force majeure, a legal step that protects a company from liability when it can’t fulfill a contract for reasons beyond its control, on Qua Iboe, Paul Arinze, general manager in charge of public and government affairs, said in a statement released today in Lagos, Nigeria’s commercial capital.

Qua Iboe blend increased 14 cents to $2.72 a barrel more than Dated Brent, according to data compiled by Bloomberg. That’s the highest since March 28.

Chevron Corp. sold 1 million barrels of Angolan Nemba grade for loading in January to Bharat Petroleum Corp., India’s second-largest state refiner, said two traders who asked not to be identified because the information is confidential.

Hindustan Petroleum Corp., India’s third-largest state refiner, is seeking to buy as much as 1 million barrels of crude for loading from Jan. 1 to Jan. 20, said two traders who asked not to be identified because the information is confidential.

The company’s tender closes on Dec. 12 and offers will remain valid until the following day, they said.

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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