Bloomberg News

Shell Buys Forties; Primorsk Urals Exports Halted by Tug Dispute

June 27, 2013

Royal Dutch Shell Plc (RDSA) bought North Sea Forties at a lower price than yesterday. Statoil ASA failed to buy Russian Urals crude at the same price of a three-year high traded June 20.

Russia plans to ship less than a million barrels a day of Urals crude from Primorsk port in July, near the lowest in more than five years, a final loading program showed. Shipments from the Baltic port were interrupted today by a tug-boat dispute.

A cargo of Forties crude is on its way to Spain, at least the second vessel to make the voyage this month, as the U.K. grade becomes more appealing to buyers amid rising Russian prices.

North Sea

Shell bought Forties cargo F0708 for July 11 to July 13 from Eni SpA at parity to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. This compares with a premium of 15 cents for a cargo Shell sold yesterday.

Total SA failed to buy Forties for July 16 to July 22 at 5 cents a barrel more than Dated Brent, the survey showed.

Total was also unable to buy Ekofisk for July 17 to July 24 at 70 cents a barrel more than Dated Brent, 10 cents higher than its bid yesterday, according to the survey.

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 13 cents less than Dated Brent, compared with a premium of 5 cents yesterday, according to data compiled by Bloomberg.

Brent for August settlement traded at $102.94 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $100.82 in the previous session. The September contract was at $102.56 at the same time today, a discount of 38 cents to August.

Repsol SA (REP) loaded a Forties cargo on the SC Sara on June 22, according to ship-tracking data compiled by Bloomberg. Another Forties consignment was loaded onto the vessel Torm Ingeborg yesterday at Hound Point, Scotland, according to ship-tracking data from ShipAIS. Both vessels are heading for Tarragona, where Repsol operates an 186,000 barrel-a-day refinery. Total SA booked a ship to collect a cargo at the Forties terminal and ship it to Poland, shipbroker data show.

Mediterranean/Urals

Statoil failed to buy 100,000 metric tons of Urals for July 10 to July 14 loading at 20 cents a barrel more than Dated Brent on a delivered basis to Rotterdam, the survey showed. This is the same price for the last trade on June 20, which was the highest in at least three years.

Urals in the Mediterranean rose by 2 cents to a discount of 20 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the grade was at 16 cents a barrel more than Dated Brent, compared with a premium of 17 cents yesterday.

Primorsk on the Baltic Sea will export 38 cargoes of 100,000 tons each and one shipment of 30,000 tons in July. The shipments will total 3.83 million tons, or 905,610 barrels a day, the schedule obtained by Bloomberg News showed, which is 2.5 percent down from this month on a barrel-per-day basis. Prior to June, the port had loaded more than 1 million barrels a day every month since at least March 2008, when Bloomberg began tracking the data.

Exports from Primorsk for June were revised down to 3.8 million tons from 3.9 million tons after one unassigned position failed to be filled. Loadings at Primorsk are currently halted because of a tug boat dispute, Igor Dyomin, spokesman for OAO Transneft, said today by phone.

Ust-Luga, also on the Baltic, will ship 19 Urals cargoes of 100,000 tons each, unchanged from June, according to the program. That amounts to 449,258 barrels a day.

Exports from Novorossiysk on the Black Sea will reach 3.252 million tons in July, or 768,941 barrels a day, up 2.8 percent from June. The July schedule includes four 80,000-ton cargoes of Siberian Light grade and 28 Urals cargoes.

Novorossiysk has one unassigned slot of 140,000 tons and Ust-Luga has one 100,000-ton position available next month, according to the program.

OAO Surgutneftegas issued a tender to sell one 100,000-ton cargo of Urals for July 12 to July 13 loading from Ust-Luga, according to two people with knowledge of the matter. The tender closes tomorrow.

Iraq plans to reduce exports of its Kirkuk crude in July from the Turkish port of Ceyhan to 17 cargoes, one less than this month, according to a loading program.

Shipments will total 9.6 million barrels, or 309,677 barrels a day, the plan showed. That compares with 302,333 barrels planned for June.

West Africa

Nigerian Benchmark Qua Iboe fell 1 cent to $2.19 a barrel more than Dated Brent, data compiled by Bloomberg showed.

Nigeria will export three cargoes of 1 million barrels each of Amenam crude in August, unchanged from July, according to a shipping plan.

The nation will also maintain its Okwori exports at one lot of 650,000 barrels in August, a separate plan showed. The loading program for benchmark Bonny Light is not released.

Separately, at Bonny Island, some Nigerian gas-carrying-vessels are being blocked from loading by a state maritime agency, a spokesman said.

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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