Bloomberg News

Vitol Fails to Buy Forties Crude; Iraq Halts Ceyhan Exports

January 09, 2013

Vitol Group failed to buy North Sea Forties crude for a third day. Statoil ASA again offered cargoes of Ekofisk and Oseberg blend without finding a buyer.

Iraq halted exports via the Turkish port of Ceyhan because of a fault on a pipeline, according to state-run North Oil Co. Five Angolan crude shipments for loading in February remain available, said three traders who participate in the market.

North Sea

Vitol bid without finding a seller for a Forties cargo loading Jan. 28 to Feb. 3 at $1.45 a barrel more than Dated Brent, 5 cents lower than yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That compares with a Jan. 21 to Jan. 23 lot it bought at a $1.50 premium on Jan. 4.

Statoil offered Oseberg shipment 20130104 for loading from Jan. 24 to Jan. 26 at $1.60 more than Dated Brent, 10 cents less than yesterday, according to the survey.

The Norway-based producer also sought to sell Ekofisk consignment C11318 for Jan. 25 to Jan. 27 at $1.50 more than Dated Brent without finding a buyer, the survey showed.

Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Forties loading in 10 to 25 days rose one cent to $1.55 more than Dated Brent, data compiled by Bloomberg show. That is the most since March 9.

Brent for February settlement traded at $111.64 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $111.69 in the previous session. The March contract was at $110.76, a discount of 88 cents to February.

A Forties cargo for loading in January was advanced by one day, the first change to this month’s program, according to three people with knowledge of the loading schedule.

Consignment F0110 will now load from Jan. 17 to Jan. 19, said the people, asking not to be identified because the information is confidential.

Mediterranean/Urals

Petraco SpA failed to buy Russian Urals crude at a $1.10 discount to Dated Brent on a delivered basis to Rotterdam, according to the Platts survey. That compares with the company’s unsuccessful bid of $1.25 less than Dated Brent on Jan. 2.

The Urals differential to Dated Brent in the Mediterranean was at minus 78 cents, 2 cents narrower than yesterday, according to data compiled by Bloomberg. In northwest Europe, the discount increased to $1.38 from $1.35 in the previous session, the data showed.

PKN Orlen SA, Poland’s largest oil company, is seeking to buy Urals for loading from two Baltic ports on Jan. 24 to Jan. 28, according to two people with knowledge of the matter.

Orlen plans to buy 100,000 metric tons from either Ust-Luga or Primorsk, the people said asking not to be identified because the information is confidential. It earlier this week bought a Jan. 21 to Jan. 25 cargo from OAO Lukoil’s Litasco unit.

The halt of Iraqi crude exports via the Ceyhan pipeline took effect earlier today at the request of Turkish authorities, North Oil said in an e-mailed statement. About 425,000 barrels a day were being shipped prior to the stoppage. That export route is often disrupted by sabotage attacks and technical faults.

West Africa

Benchmark Nigerian Qua Iboe blend dropped one cent to $2.37 a barrel more than Dated Brent, data compiled by Bloomberg show.

Unsold Angolan grades for export next month include two shipments of Pazflor, and one each of Dalia, Hungo and Saturno, said the people, who declined to be identified because the information is confidential. All lots are for 950,000 barrels.

Angola plans to export 50 cargoes totaling 1.7 million barrels a day in February, compared with 59 lots for January, according to a revised shipping schedule obtained by Bloomberg News. Two Saturno consignments were added to the original plan. The program for March is scheduled to be released next week.

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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