Bloomberg News

Lukoil Bids Urals at Three-Month High; IOC Buys Nigerian Crude

November 07, 2013

Royal Dutch Shell Plc (RDSA) bought North Sea Forties and Oseberg crude grades. OAO Lukoil failed to buy Russian Urals in the Mediterranean at the highest level for more than three months.

Indian Oil Corp., the nation’s largest refiner, bought five million barrels of Nigerian crude in its first tender for January loading fuel, said four traders who participate in the market, asking not to be identified because the information is confidential.

North Sea

Shell bought Forties cargo F1120 for loading Nov. 28 to Nov. 30 from BP Plc (BP/) at 9 cents a barrel less than Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The grade was last sold on Nov. 4 at a discount of 24 cents for loading on Nov. 17 to Nov. 19.

Shell also bought Oseberg cargo 20131102 for Nov. 19 to Nov. 21 from Vitol Group at a premium of 75 cents to Dated Brent, 5 cents less than yesterday, the survey showed.

BP failed to sell Ekofisk for Nov. 21 to Nov. 23 at 80 cents a barrel more than Dated Brent, or a premium of $1.05 for Nov. 25 to Nov. 27, according to the survey.

Brent for December settlement traded at $103.75 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $106.11 in the previous session. The January contract was at $103.93, a premium of 18 cents to December.

Repair works at the North Sea Claymore and Piper platforms will be extended, according to Talisman Sinopec Energy U.K. Ltd., the operator.

Production at Claymore was shut in the last week of August in preparation for a new compressor to be lifted onto the platform on Aug. 30, Gavin Roberts, a company spokesman, said by e-mail.

The halt was extended because of corrosion issues and production is expected to resume in the first quarter of next year, Talisman said yesterday in its results for the third quarter.

The Piper platform shut in October for planned maintenance and an issue was identified with the flare tip, which is being replaced, Roberts said.

North Sea oil producers will ship 2.3 percent less of the region’s 12 main crudes next month, loading programs obtained by Bloomberg show.

Cargoes of Brent, Forties, Oseberg, Ekofisk, Statfjord, Gullfaks, Alvheim, Aasgard, DUC, Flotta, Grane and Troll blends will total almost 63.2 million barrels. That’s equal to about 2.037 million barrels a day and compares with a revised 2.085 million a day of loadings this month.

Urals/Mediterranean

Lukoil didn’t manage to buy 80,000 metric tons of Urals for Nov. 17 to Nov. 21 loading at 25 cents a barrel more than Dated Brent on a delivered basis to Rotterdam, the survey showed. That’s the highest bid since July 24 and compares with a discount of 30 cents yesterday for loading on Nov. 15 to Nov. 19.

Three free slots for Urals for November loading from Baltic Sea ports were filled, said four traders who asked not to be identified because the information is confidential.

OAO Rosneft filled two free slots at Ust-Luga for loading on Nov. 23 to Nov. 24, Nov. 27 to Nov. 28, they said. An extra cargo for Nov. 24 to Nov. 25 from Primorsk, also owned by Rosneft, was added to the loading program.

Rosneft put the three cargoes in a tender which closes at 3 p.m. Moscow time on Nov. 8, with offers valid until Nov. 11, said two traders who received the document.

OAO Surgutneftegas filled the position for Nov. 26 to Nov. 27 from Primorsk. The cargo was sold to Talmay Trading via a tender, said three traders involved in the region’s oil market.

China International United Petroleum & Chemical Co., known as Unipec, booked the Suexmaz Seatriumph to load Urals crude from Novorossiysk on the Black Sea on Nov. 29 to Ningbo, China, at a cost of $3.1 million, according to two tanker reports, including Athens-based Optima Shipbrokers. A Suezmax tanker typically holds 1 million barrels of crude. Lv Dapeng, a Beijing-based spokesman for China Petroleum & Chemical Corp., parent of Unipec, didn’t reply to two calls to his office.

Libya’s Mellitah port resumed loading after contacts with Amazigh community representatives and local officials, according to the website of state-owned National Oil Corp., citing Deputy Oil Minister Omar Shakmak.

West Africa

BP failed to sell 600,000 barrels of Nigerian Qua Iboe at $4.05 a barrel more than Dated Brent for Nov. 12 to Dec. 12 delivery to Rotterdam, or a premium of $3.90 for delivery to Lavera, France, during the same period, the survey showed. Offers were 15 cents less than yesterday.

Indian Oil bought Bonny Light and Bonga crudes from Shell, Qua Iboe and EA from Total SA, and Escravos from Chevron Corp. (CVX:US), the four traders said. Each grade is of 1 million barrels.

PT Pertamina, Indonesia’s state-owned oil company, is seeking to buy 950,000 barrels of crude in tender for Jan. 7 to Jan. 9, or Jan. 12 to Jan. 14 delivery to Cilacap refinery, or Jan. 9 to Jan. 14 to Balikpapan plant, according to a document obtained by Bloomberg News. The tender closes at 3 p.m. Singapore time on Nov. 11, with offers valid until 6 p.m. Nov. 12.

To contact the reporters on this story: Sherry Su in London at lsu23@bloomberg.net; Laura Hurst in London at lhurst3@bloomberg.net

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


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Companies Mentioned

  • CVX
    (Chevron Corp)
    • $127.11 USD
    • -0.82
    • -0.65%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus