Bloomberg News

Trafigura Fails to Sell Brent Crude; Repsol Wins Surgut Urals

December 27, 2012

Trafigura Beheer BV failed to sell a cargo of North Sea Brent crude. Vitol Group offered Russian Urals grade without finding a buyer.

OAO Surgutneftegas, Russia’s fourth-largest oil producer, awarded a tender for two cargoes of Urals to Repsol SA for loading from two Baltic ports, according to two people with knowledge of the tender.

North Sea

Trafigura failed to find a buyer for Brent lot B0105 at a $1.15 premium to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That’s the first time the grade has been offered in over two months.

There were no bids or offers for Forties, according to the survey. The grade traded on Dec. 24 at parity to Dated Brent, which was the lowest differential in three weeks.

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 to 9 cents less than Dated Brent, data compiled by Bloomberg show. That compares with a premium of 24 cents on Dec. 24 and is the first time the grade has been at a discount since Dec. 3.

Brent for February settlement traded at $110.15 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $108.31 in the previous session. The March contract was at $109.19 a discount of 96 cents to February.

Mediterranean/Urals

Vitol failed to sell 140,000 metric tons of Urals in the Mediterranean at a discount of $1.35 a barrel to Dated Brent on a delivered basis to Augusta, Italy, according to the Platts survey. That is 20 cents less than the company’s offer in the previous session, which was also unsuccessful.

The Urals differential to Dated Brent in the Mediterranean widened 20 cents to minus 79 cents, according to data compiled by Bloomberg. In northwest Europe, the discount to Dated Brent increased 46 cents to $1.27, the data showed. That’s the most since Dec. 10.

Surgut sold one 100,000 ton shipment each from Primorsk and Ust-Luga to Repsol, both for loading Jan. 13 to Jan. 14, according to the people, who declined to be identified because the information is not public.

West Africa

Qua Iboe blend dropped 6 cents to $2.48 a barrel more than Dated Brent, according to data compiled by Bloomberg.

Sonatrach, the Algerian state-run oil producer, raised its official selling price for benchmark Saharan Blend crude for loading in January to $1.20 a barrel more than North Sea Dated Brent, according to an e-mailed price list from the company.

This compares with a premium of 60 cents a barrel for December and is the highest since November 2011.

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

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


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