Bloomberg News

BP, Total Sell Forties at Higher Price; Eni Seeks Urals Crude

June 13, 2013

BP Plc (BP/) and Total SA (FP) sold North Sea Forties crude at higher prices than their offers yesterday. Eni SpA (ENI) failed to buy Russian Urals blend in the Mediterranean for a second day even after raising its bid.

A very large crude carrier is on its way to South Korea after loading North Sea Forties crude, the first supertanker to ply this voyage in almost three months, according to ship-tracking data from IHS Inc. (IHS:US) The supertanker is the fifth to make the trip this year down from 12 over the same period in 2012 as South Korea changes its import taxes.

North Sea

BP sold Forties cargo F0620 for June 27 to June 29 loading to Statoil ASA (STL) at 15 cents a barrel less than Dated Brent, 5 cents more than than its offer yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Total sold Forties lot F0617 for June 23 to June 25 to Royal Dutch Shell Plc (RDSA) at minus 20 cents, 15 cents higher than its offer yesterday, according to the survey.

Shell didn’t manage to buy a second cargo for June 23 to June 27 at a discount of 30 cents, the survey showed.

Gunvor Group failed to buy Forties for June 27 to July 3 at 40 cents less than Dated Brent, the survey showed.

BP also sold a cargo of Ekofisk for July 1 to July 3 to Total at a premium of 70 cents a barrel to Dated Brent, the survey showed. No bids or offers were made for Oseberg.

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 at 40 cents less than Dated Brent, compared with a discount of 46 cents yesterday, according to data compiled by Bloomberg.

Brent for July settlement traded at $103.75 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $103.86 in the previous session. The August contract was at $103.90 at the same time today, a premium of 15 cents to July.

The VLCC Maersk Sandra loaded Forties from June 7 to June 11 at Hound Point, Scotland, and is heading to Daesan, the data showed. The vessel was chartered by Vitol Group, according to reports from shipbrokers, including ICAP Shipping International Ltd. on May 20.

Mediterranean/Urals

Eni failed to buy 80,000 metric tons of Urals for June 29 to July 3 at 10 cents a barrel less than Dated Brent on a delivered basis to Augusta in Italy, 25 cents more than its bid yesterday, according to the survey.

Vitol was unable to sell the crude for June 23 to June 27 at parity to Dated Brent, the survey showed. That compares with its offer yesterday at a discount of 10 cents.

Urals in the Mediterranean rose by 7 cents to a discount of 28 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was 30 cents to the benchmark, versus minus 33 cents in the previous session.

West Africa

Benchmark Nigerian Qua Iboe blend rose by 2 cents to a premium of $2.28 a barrel to Dated Brent, data compiled by Bloomberg show.

BP said that Angola’s PSVM project, the largest subsea oil and gas development, will reach peak output of 150,000 barrels of oil a day in December, earlier than previously expected.

The company said in January that production wouldn’t reach that level until 2014. The fields are currently pumping about 100,000 barrels a day, up from 70,000 barrels earlier this year, said Martyn Morris, BP’s regional president.

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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