Vitol Sells Forties Crude; BP Halts Scotland Foinaven Oil Field

Forties crude traded at a higher price for a third day as Vitol Group sold a cargo of the grade.

BP Plc (BP/) said its Foinaven field to the west of Scotland’s Shetland Islands remains closed after a “small” leak was detected in an underwater pipe.

North Sea

Glencore International Plc bought Forties from Vitol for loading Feb. 17 to Feb. 19 at 10 cents a barrel less than Dated Brent (EUCRBRDT), compared with a discount of 30 cents on Jan. 27, according to a Bloomberg survey of traders monitoring the Platts trading window.

A floating production unit at BP’s Foinaven field, about 190 kilometers (120 miles) west of the Shetland Islands, was halted, Matt Taylor, a BP spokesman, said by phone. The facility was producing 43,000 barrels of oil a day and it may be a matter of weeks before it starts again, he said.

Reported North Sea trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the session, Forties loading in 10 to 25 days was 24 cents a barrel less than Dated Brent, down from a discount of 39 cents on Jan. 27, according to data compiled by Bloomberg.

Brent for March settlement traded at $111.05 a barrel on the London-based ICE Futures Europe exchange at the close of the window, down from $111.54 on Jan. 27. The April contract was at $110.72, a discount of 33 cents to March.

Mediterranean/Urals

Vitol Group offered 140,000 metric tons of Urals (EUCSURMD) for Feb. 19 to Feb. 23 delivery to Augusta in Italy for 30 cents a barrel more than Dated Brent, without attracting a buyer, the survey showed. That compares with a bid at 45 cents a barrel less than Dated Brent on Jan. 26.

Russia, the world’s biggest oil producer, will cut its export duty on most crude shipments by 1 percent from Feb. 1 after prices fell.

The standard tax will drop to $393.70 a metric ton ($53.71 a barrel), according to a decree signed by Prime Minister Vladimir Putin and published today in the government’s daily Rossiyskaya Gazeta. That compares with $397.50 this month. The discounted rate on some Eastern Siberian and offshore oil will decline to $191.20 a ton from $194.10.

West Africa

Qua Iboe (AFCSQUA1) crude was at a premium of $2.67 a barrel to Dated Brent, unchanged from Jan. 27, data compiled by Bloomberg shows.

To contact the reporter on this story: Nidaa Bakhsh in London at nbakhsh@bloomberg.net

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

Bloomberg reserves the right to edit or 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.