Trafigura Sells Three Forties Oil Cargoes; Urals Demand Gains

Trafigura Beheer BV sold cargoes of Forties crude for a second day. Total SA said production at its North Sea Elgin platform resumed after a fault yesterday.

Russian Urals crude didn’t trade, even as Vienna-based consultant JBC Energy GmbH said the grade was rising amid increased demand and lower supplies.

North Sea

Trafigura sold three shipments of Forties oil, a Bloomberg survey of traders and brokers monitoring the Platts trading window showed. Royal Dutch Shell bought the first consignment for Nov. 19 to Nov. 21 loading at a premium of 30 cents a barrel to Dated Brent, while Total and Statoil ASA both purchased late- November cargoes at 45 cents more than Dated Brent.

Morgan Stanley failed to buy a Nov. 22 to Nov. 26 shipment at 25 cents more than Dated, while Trafigura didn’t manage to sell a Nov. 22 to Nov. 24 consignment at a premium of 75 cents.

Forties traded yesterday at 40-cent and 55-cent premiums.

Output at Total’s North Sea Elgin platform “restarted last night,” Brian O’Neill, an Aberdeen, Scotland-based company spokesman, said in an e-mailed statement. The Elgin-Franklin fields produce oil and natural gas.

Reported North Sea 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 at 50 cents a barrel more than Dated Brent, compared with a 20-cent premium yesterday, according to Bloomberg data.

Brent for December settlement traded at $115.14 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $114.19 the previous session. The January contract was at $113.82 a barrel, $1.32 less than December.

Mediterranean/Urals

No bids or offers were made for Russian Urals crude, according to the survey. Refining margins, or the profit from processing crude, in the Mediterranean dropped because of the grade’s “resurgent strength,” analysts led by David Wech at Vienna-based consultant JBC Energy GmbH said in a note today.

Urals “has received a boost from a bullish cocktail of solid demand, tight supplies from Novorossiysk and a scarcity of alternative grades,” Wech said.

Yesterday, Petraco Oil Co. failed buy 100,000 tons of Urals in Northwest Europe at a discount of 40 cents to Dated Brent.

West Africa

Nigerian benchmark Qua Iboe crude was at a $2.28 a barrel premium to Dated Brent, down 30 cents from yesterday, Bloomberg data showed. Vitol offered to sell a 950,000-barrel cargo of the grade in the previous session at a $2.35 a barrel premium to Dated Brent for loading Nov. 23 to Nov. 24.

To contact the reporter on this story: Lananh Nguyen in London at lnguyen35@bloomberg.net

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.