Bloomberg News

Morgan Stanley Buys Forties Crude; Urals Extends Gain in Italy

March 01, 2013

Morgan Stanley bought a cargo of North Sea Forties crude. Russian Urals blend gained for a second day in the Mediterranean after Total SA purchased a shipment.

Royal Dutch Shell Plc booked the first tanker in more than one month to haul Forties grade to South Korea as refinery maintenance in the Asian nation nears end, according to a shipbroker report.

North Sea

Phibro, a unit of Occidental Petroleum Corp., sold Forties crude for a second day, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The cargo, for loading from March 19 to March 21, changed hands at a premium of 70 cents a barrel to BFOE grades for delivery in May. Three shipments traded yesterday at 20 cents and 25 cents more than the Dated Brent benchmark.

Mercuria Energy Trading SA wasn’t able to buy a consignment for loading March 26 to March 30 at Dated Brent plus 20 cents a barrel, the survey showed. The trader purchased two cargoes yesterday at a 25 cent premium.

Shell booked the very large crude carrier Al Salmi to load 270,000 metric tons of the blend on Mar. 15 from Hound Point in the U.K., an e-mailed report from Norwegian shipbroker PF Bassoe AS today showed. The rate for the booking was not disclosed. The terminal handles Forties exports. Total SA last booked a VLCC on Jan. 24 to load crude in February.

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 was unchanged at 12 cents a barrel more than Dated Brent, according to data compiled by Bloomberg.

Brent for April settlement traded at $110.34 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $112.23 in the previous session. The May contract was at $109.33, a discount of $1.01 to April.

Mediterranean/Urals

Total bought the Urals cargo from Vitol Group in the Mediterranean at a smaller discount, the survey of Platts showed. The 80,000-ton consignment traded at $2.35 a barrel less than Dated Brent for delivery to Augusta, Italy. That compares with a deal at minus $2.90 yesterday. Differentials widened to a 22-month low of $3.40 on Feb. 27.

In northwest Europe, Total bid without success to buy 100,000 tons at minus $2.50 a barrel for delivery to Rotterdam, the survey showed.

The Urals discount to Dated Brent in the Mediterranean expanded 2 cents a barrel to $2.88, data compiled by Bloomberg show. That’s the widest since April 16. In northwest Europe, the discount was at $2.90 a barrel, compared with $2.88 in the previous session. That’s the biggest discount since April 18.

West Africa

Benchmark Nigerian Qua Iboe blend rose 10 cents to $2.40 a barrel more than Dated Brent yesterday, Bloomberg data show. That’s the highest since Jan. 4.

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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