Mercuria Fails to Buy North Sea Forties; Petraco Offers Urals
Mercuria Energy Trading SA failed to buy North Sea Forties crude at a higher price. Petraco Oil Co. sought to sell Russian Urals without success.
Mercuria was unable to buy one shipment of Forties for July 23 to July 29 loading at 35 cents a barrel more than Dated Brent, according to a survey of traders and brokers monitoring the Platts trading window. Yesterday, Trafigura Beheer BV sold one shipment of Forties for July 19 to July 21 loading to Royal Dutch Shell Plc at a premium of 15 cents.
Reported North Sea market trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the window, Forties loading in 10 to 21 days was 25 cents more than Dated Brent, unchanged from yesterday, according to data compiled by Bloomberg.
Brent for August settlement traded at $117.33 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $113.40 yesterday. The September contract was at $116.89 a barrel, 44 cents less than August.
One cargo of Forties crude was dropped from the July export program, bringing the total number of shipments for this month to 23, according to a revised shipping schedule obtained by Bloomberg News.
The dropped cargo, with the parcel number of F0716, was previously for loading July 25 to July 27, the plan showed. The July loading plan originally comprised 18 cargoes of 600,000 barrels. Over the past month, four shipments were deferred to July from June and two were added.
The Netherlands sold 450,000 barrels of Brent in a tender under an International Energy Agency stock release program, according to an official from the agency handling the sales.
Petraco failed to sell 80,000 metric tons of Urals for July 17 to July 21 delivered to the Mediterranean at $1.10 a barrel below Dated Brent, the survey showed. Yesterday Arcadia Petroleum Ltd. sold one shipment at a discount of $1.05 a barrel.
No bids or offers were made in northwest Europe. Yesterday Shell was unable to sell at 65 cents less than Dated Brent for July 27 to July 31.
Urals was at $1.08 a barrel less than Dated Brent in the Mediterranean today, the highest since Dec. 7, 2010, while the discount in northwest Europe was at 70 cents to the benchmark, the narrowest since Oct. 15, 2010, according to Bloomberg data.
Ghana’s Jubilee oil field may reach peak production in August or September, a month later than planned, after boosting output to as much as 80,000 barrels a day since the start of this month, according to Tullow Oil Plc, the field’s operator.
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