Bloomberg News

Total Buys Forties Crude; Urals Retreats From 10-Month High

June 19, 2013

Total SA (FP) bought North Sea Forties crude within the same price range as previous trades. No bids or offers were made for Russian Urals for a second day even after the grade fell from yesterday’s 10-month high in Northwest Europe.

Forties cargo F0701 was advanced by two days to load on June 29 to July 1, two days earlier than the original schedule, said two traders with knowledge of the loading program, asking not to be identified because the information is confidential.

North Sea

Total bought Forties cargo F0705 from Phillips 66 (PSX:US) at 15 cents a barrel less than Dated Brent for loading on July 6 to July 8, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The grade was last sold at discounts of 15 and 20 cents on June 13.

Total failed to buy Ekofisk for July 8 to July 13 at a premium of 50 cents a barrel to Dated Brent, 10 cents less than a trade yesterday, according to the survey.

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 3 cents more than Dated Brent, compared with a premium of 9 cents yesterday, according to data compiled by Bloomberg.

Brent for August settlement traded at $106.08 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $105.68 in the previous session. The September contract was at $105.83 at the same time today, a discount of 25 cents to August.

The share of Buzzard crude produced in the Forties blend rose to 44 percent in the week to June 16, the highest since the period ending April 21, BP Plc (BP/) said on its website.

Mediterranean/Urals

Urals in the Mediterranean fell by 4 cents to a discount of 14 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the grade was at 5 cents a barrel less than Dated Brent, compared with parity yesterday which was the highest since Aug. 16.

Libya raised its crude output to 1.38 million barrels a day, Mustafa Sonallah, board member of the state-run National Oil Corp., said by telephone today.

The nation’s production will rise to 1.6 million “in a couple of days,” he said. Output dropped to below 1 million barrels, reaching 900,000 barrels on June 13.

Harouge Oil Operations, a joint venture between Libya’s NOC and PetroCanada, increased its output to 51,000 barrels a day, which represents half of its capacity, Sonallah said.

Libyan government is in talks with strikers and protesters at oil and gas sites to boost output to 1.6 million, he said.

Iraq’s Kurds will start exporting crude by pipeline “very soon” after the completion of a new link to the Turkish border by the end of September, the Kurdistan Regional Government’s natural resources minister said.

The pipeline to Fishkabour near the frontier with Turkey will have a capacity of 1 million barrels a day by 2015, Ashti Hawrami said today at a conference in London. The semi-autonomous region in northern Iraq is “well on its way” to have enough oil to fill the line’s capacity, he said.

West Africa

Benchmark Nigerian Qua Iboe fell 2 cents to $2.26 a barrel more than Dated Brent, data compiled by Bloomberg showed.

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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