Bloomberg News

Total Buys North Sea Brent; Iraq to Cut Basrah Crude Exports

June 24, 2013

Total SA bought two cargoes of North Sea Brent in a rare transaction of the grade to be recorded in the Platts trading window. Eni SpA and Royal Dutch Shell Plc failed to sell Forties.

Iraq will ship 43 cargoes of Basrah Light crude from the Persian Gulf in July, one less than this month, a loading program obtained by Bloomberg News showed.

North Sea

Total purchased two cargoes of Brent from Shell at parity to Dated Brent and at a 20 cents a barrel premium for loading on July 10 to July 12 and July 13 to July 15 respectively, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Eni failed to find a buyer for two consignments of Forties at premiums of 25 cents and 30 cents to the benchmark, while Shell was unsuccessful with an offer at plus 25 cents, the survey showed.

Mercuria Energy Trading SA, Total and Trafigura Beheer BV all failed to buy the grade at a range of parity to 15 cents more than Dated Brent, according to the survey.

Eni and Shell also offered Ekofisk unsuccessfully at premiums of 85 cents to 90 cents to Dated Brent while Total didn’t manage to buy the grade for July 11 to July 17 at 80 cents more than the benchmark, the survey showed.

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 12 cents more than Dated Brent, compared with a premium of 3 cents on June 21, according to data compiled by Bloomberg. This is the highest since May 20.

Brent for August settlement traded at $100 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $100.60 in the previous session. The September contract was at $99.63 at the same time today, a discount of 37 cents to August.

Three Forties cargoes for loading next month were advanced by one or two days each, according to two people with knowledge of the loading programs, who asked not to be identified as the information is confidential.

Statoil ASA said its Oseberg field in the North Sea resumed production last weekend, spokesman Ola Anders Skauby said in an e-mail, without giving further details.

Mediterranean/Urals

There were no bids or offers for Russian Urals, the Platts survey showed.

Urals in the Mediterranean fell by 21 cents to a discount of 31 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the grade was at 22 cents a barrel more than Dated Brent, compared with a premium of 20 cents on June 21. That’s the highest since Aug. 16.

Iraq will export about 67.6 million barrels, or 2.18 million barrels a day, of the blend from the Basrah Oil Terminal, according to the plan. That compares with 2.39 million barrels a day this month.

The schedule comprises 26 lots of 2 million barrels each, 13 shipments of 1 million barrels, three of 715,000 barrels and one of 500,000 barrels.

OAO Surgutneftegas sold two lots of Urals crude from the Baltic ports of Primorsk and Ust-Luga to BP Plc and Repsol SA for loading July 7 to July 8, according to two people with knowledge of matter who asked not to be identified because the information is confidential.

Algeria’s Sonatrach set the official selling price for benchmark Saharan Blend crude for loading in July to 40 cents a barrel less than Dated Brent, compared with a discount of 85 cents for June, the company said in an e-mailed statement.

West Africa

Nigerian Benchmark Qua Iboe fell 2 cents to $2.22 a barrel more than Dated Brent, data compiled by Bloomberg showed.

Nigeria will export eight cargoes of Forcados, five each of Akpo and Bonga, four of Brass, three each of Erha and Yoho, two of EA, one each of Abo and Okono in August, according to loading programs obtained by Bloomberg News. All shipments are of 250,000 barrels to 1 million barrels.

Bharat Petroleum Corp. extended closing and validity dates for its tender seeking crude for loading in August, said two traders who asked not to be identified because the information is confidential.

Taiwan’s CPC Corp. issued a tender to buy 1.9 million barrels of West African crude for loading in August, according to a statement on its website. The tender closed today, with offers valid until 7 p.m. local time on June 26.

The tender will close tomorrow, with offers staying valid until the day after, the traders said. Bharat Petroleum was previously scheduled to award the tender on June 21.

China Petrochemical Corp. signed an agreement with Marathon Oil on June 18 to buy 10 percent stake in an oil and gas field in Angola called Block 31 for $1.52 billion, the Chinese company said in an e-mailed statement.

China Petrochemical’s interest in this block, operated by BP, will rise to 15 percent after purchase, according to the statement. The deal is subject to approval from the Chinese and Angolan governments.

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