Bloomberg News

Vitol Sells More Forties; Main North Sea Crudes May Fall

April 08, 2013

Vitol Group sold a cargo of Forties crude in the North Sea market to Morgan Stanley, bringing its total to seven since March 28.

Daily shipments of North Sea crude for loading in May will drop by 5 percent from April, according to programs obtained by Bloomberg News.

North Sea

Vitol sold the Forties shipment for loading April 24 to April 26 at 30 cents a barrel less than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That’s 5 cents lower than a trade in the previous session.

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 narrowed by 4 cents to a discount of 21 cents a barrel to Dated Brent, according to data compiled by Bloomberg. That’s the smallest spread since March 19.

Brent for May settlement traded at $104.07 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $104.73 in the previous session. The June contract was at $104.19, a premium of 12 cents to May.

Shipments of Brent, Forties, Oseberg, Ekofisk, Statfjord, Gullfaks, Alvheim, Aasgard, DUC, Flotta, Grane and Troll blends will total 58.8 million barrels, or 1.9 million barrels a day, compared with 2 million this month, according to the plans.

Norwegian unions and employers reached an agreement in collective-bargaining talks that extended beyond a midnight deadline, averting a strike that could have curbed oil production for the second time in less than a year.

Mediterranean/Urals

No bids or offers were declared for Russian Urals crude for a second trading day, according to the survey of brokers monitoring Platts. The grade was bid in the Mediterranean on April 4 at discounts of 70 cents to $1 a barrel to Dated Brent and last traded at minus 90 cents on Feb. 22.

The Urals discount to Dated Brent in the Mediterranean was unchanged at 75 cents a barrel, data compiled by Bloomberg show. That’s the least since Feb. 4. In northwest Europe, the discount was unchanged at $2.15 a barrel.

West Africa

Benchmark Nigerian Qua Iboe blend dropped 10 cents to $3.50 a barrel more than Dated Brent, data compiled by Bloomberg show.

Indian Oil Corp., the nation’s largest refiner, issued a tender to buy crude for June loading, a document obtained by Bloomberg News shows.

The company bought 1 million barrels each of Nigeria’s Bonga and Forcados crudes from Trafigura Beheer BV and the same amount of Abu Dhabi’s Murban grade from Total SA in a previous tender for June loading, according to four traders who asked not to be identified as the information is confidential.

Mangalore Refinery & Petrochemicals Ltd. purchased 650,000 barrels of Gabon’s Rabi Light from Royal Dutch Shell Plc and the same amount of Upper Zakum from Itochu Corp. for loading May 1 to May 15, the traders said.

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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