Bloomberg News

Total Buys Russian Urals Crude; Nigeria to Export 59 March Lots

January 21, 2013

Total SA bought a cargo of Russian Urals crude for delivery to northwest Europe, the first trade in four weeks. Chevron Corp. and Royal Dutch Shell Plc offered North Sea Forties at a higher differential that the last deal without finding buyers.

Nigeria, Africa’s largest oil producer, is scheduled to export 59 crude cargoes in March, partial loading programs obtained by Bloomberg show.

North Sea

Chevron offered Forties lot F0217 for loading Feb. 8 to Feb. 10 at a 50 cent premium to Dated Brent, without finding a buyer, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The lot had been advanced by 16 days, the third February cargo to be brought forward, according to two people with knowledge of the matter.

Shell didn’t find a buyer for consignment F0208 loading Feb. 11 to Feb. 13 at plus 55 cents a barrel, according to the survey. Those offers compare with a Jan. 17 trade at a 20 cent premium to the benchmark.

Total bid unsuccessfully for the blend loading Feb. 5 to Feb. 7 at 55 cents more than the benchmark and also for one from Feb. 7 to Feb. 12 at plus 40 cents, 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 7 cents to 47 cents a barrel more than Dated Brent, data compiled by Bloomberg show.

Brent for March settlement traded at $111.64 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $110.86 in the previous session. The April contract was at $110.70, a discount of 94 cents to March.

The Brent pipeline system was pumping at 80,000 barrels a day, 10,000 barrels a day below capacity, operator Abu Dhabi National Energy Co. PJSC said in a statement today. The Cormorant Alpha platform, where an oil leak was found on Jan. 14, remains shut, it said.

Mediterranean/Urals

Total bought 100,000 metric tons of Urals from Statoil ASA for loading Feb. 2 to Feb. 6 at a 90 cent discount to Dated Brent on a delivered basis to Rotterdam, according to the Platts survey. That compares with a trade on Dec. 24 at $1.30 less than the benchmark.

The Paris-based company also failed to find a seller for a lot loading Feb. 10 to Feb. 14 at 85 cents less than the benchmark, the survey showed.

The Urals differential to Dated Brent in the Mediterranean narrowed 3 cents to minus 30 cents a barrel, according to data compiled by Bloomberg. That’s the least since Dec. 21. In northwest Europe, the discount narrowed to $1.10 from $1.17 yesterday, the data showed.

Russia will export 21 cargoes of 100,000 tons each of Urals from the Baltic port of Primorsk from Jan. 31 to Feb. 11, according to a loading program obtained by Bloomberg News.

The nation will also ship six lots of the grade from the Black Sea port of Novorossiysk and one of Siberian Light from Feb. 4 to Feb. 10, the schedule showed. Lots from the port are either of 80,000 or 140,000 tons.

Shipments from Ust-Luga will total five consignments of 100,000 tons from Jan. 31 to Feb. 10, the plan showed.

TNK-BP sold a cargo of Urals for loading next month from Novorossiysk to Shell, according to four traders with knowledge of the matter.

Shell bought the 140,000 ton shipment for loading Feb. 7 to Feb. 8, the people said, asking not to be identified because the information is confidential.

OAO Zarubezhneft awarded its tenders to sell 321,000 tons of Urals to Glencore International Plc, according to three people with knowledge of the matter.

The company offered 246,000 tons to be loaded once a month in lots of 82,000 tons and 75,000 tons to be shipped in lots of 25,000 tons, the people said, asking not to be identified because the information is confidential. The shipments are for loading from the Baltic port of Primorsk in the first quarter.

Loadings at Novorossiysk were delayed amid bad weather, according to Transneft official. The port loaded its first crude tanker in five days yesterday during easing of winter storms on Black Sea, Igor Dyomin, a company spokesman, said today by phone, adding that four tankers await loading.

West Africa

Benchmark Nigerian Qua Iboe blend fell 1 cents to $2.14 a barrel more than Dated Brent, Bloomberg data show.

Daily exports of Nigerian crude in March are scheduled to be 1.77 million barrels, according to the plans, which exclude seven grades. Total shipments for next month are planned at 2.16 million barrels a day, the full schedule for February showed.

The country will ship 12 consignments of Qua Iboe grade, two more than a revised schedule for next month, according to the program. The total includes three lots that were deferred from February. Exports of Bonny Light blend will fall by two to five cargoes.

Nigeria will export eight cargoes of Forcados, seven of Agbami, five each of Akpo and Bonga, four of Brass River, three lots of Amenam, Erha and Usan and two each of EA Blend and Yoho, the plans showed.

The schedules for Abo, Antan, Escravos, Okono, Okwori, Oso and Pennington were not yet available. Those grades totaled at least nine cargoes in February.

Equatorial Guinea plans to export three cargoes of Zafiro in March, the same number as a revised schedule for next month, according to a loading program obtained by Bloomberg News.

The three lots are all of 950,000 barrels, the plan showed. The nation will ship two consignments of Ceiba grade in March, one less than next month, an earlier plan showed. The Aseng schedule isn’t yet available.

CPC Corp., a Taiwanese state-run oil company, issued a tender to buy crude for loading in March or April, according to a document obtained by Bloomberg News.

The tender closes tomorrow at 10 a.m. local time, with offers valid until 7 p.m. on Jan. 24, the document showed.

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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