Bloomberg News

Total Buys Fourth Forties Cargo; Kirkuk Crude Exports to Drop

January 22, 2013

Total SA bought two cargoes of North Sea Forties crude, its fourth in one week, as prices rose to the most in a week. Glencore International Plc failed to buy Russian Urals grade in the Mediterranean.

Iraq plans to reduce exports of its Kirkuk crude in February from the Turkish port of Ceyhan to 15 cargoes, three less than this month, according to a loading program obtained by Bloomberg News.

North Sea

Total bought Forties lot F0217 for loading Feb. 8 to Feb. 10 at a 40 cent premium to Dated Brent from Chevron Corp. and F0208 for loading Feb. 11 to Feb. 13 at 35 cents more than the benchmark from Royal Dutch Shell Plc, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The deals compare with a Jan. 17 trade at plus 20 cents and are the highest since Jan. 15.

The Paris-based company also bid for Forties cargoes loading Feb. 5 to Feb. 7 at a 60 cents more than Dated Brent and a Feb. 7 to Feb. 11 consignment at plus 45 cents without finding a seller, according to the survey. Total last week chartered the very large crude carrier Mesdar to load on Feb. 5 to Feb. 10 from Hound Point in the U.K. to South Korea.

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 5 cents to 52 cents a barrel more than Dated Brent, data compiled by Bloomberg show.

Brent for March settlement traded at $112.04 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $111.64 in the previous session. The April contract was at $111.07, a discount of 97 cents to March.

Mediterranean/Urals

Glencore bid unsuccessfully for 80,000 metric tons of Urals for Feb. 1 to Feb. 5 at a 5 cent premium to Dated Brent on a delivered basis to Augusta, Italy, according to the Platts survey. That’s the first bid since Jan. 2 and compares with a Dec. 13 deal at a 25 cent discount.

The Urals differential to Dated Brent in the Mediterranean narrowed 3 cents to minus 27 cents a barrel, according to data compiled by Bloomberg. That’s the least since Dec. 17. In northwest Europe, the discount shrank to 81 cents from $1.17 yesterday, the data showed. That’s the smallest spread since Dec. 21.

Four oil tankers are waiting at Novorossiysk, Russia’s largest commercial port, to pick up crude cargoes after storms since Jan. 15 delayed shipments, according to OAO Transneft.

One 80,000-ton tanker loaded yesterday during an easing of the storm, Igor Dyomin, a Transneft spokesman, said by phone from Moscow. The storms are forecast to continue until Jan. 24, he said.

OAO Surgutneftegas issued a tender to sell one 100,000-ton cargo of Urals for loading from Feb. 8 to Feb. 9 from the Baltic port of Ust-Luga, two people with knowledge of the matter said.

PKN Orlen SA, Poland’s largest oil company, is seeking to buy 100,000 tons of Urals for loading from either Primorsk or Ust-Luga on Feb. 4 to Feb. 8, according to two people with knowledge of the matter.

West Africa

Benchmark Nigerian Qua Iboe blend fell 1 cent to $2.13 a barrel more than Dated Brent, Bloomberg data show. That’s the least since Dec. 4.

Nigeria will reduce crude exports in March to the least in four months, according to preliminary loading programs obtained by Bloomberg News.

Daily exports are scheduled to be 2.05 million barrels compared with 2.16 million in February, according to the plans. The African nation will ship 69 cargoes in March, totaling 63.57 million barrels, the schedule showed. That compares with 65 lots, or 59.49 million barrels, due to be shipped next month.

Ghana and Chad plan to keep exports of their Jubilee and Doba grades unchanged at three cargoes each in March, according to loading program plans obtained by Bloomberg News.

Ghana will ship three 950,000 barrel lots of its Jubilee grade, or 91,935 barrels a day, the plan showed. Exports of Doba blend will also total three 950,000 barrel consignments, a separate schedule showed.

PT Pertamina, Indonesia’s state-owned oil company, issued a tender to buy low-sulfur crudes for delivery in April, a document obtained by Bloomberg News showed.

The tender closes at 3 p.m. Singapore time on Jan. 24 with offers valid until 6 p.m. the following day. Cargoes are for delivery to its refineries in Balikpapan, Balongan and Cilacap.

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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