Trafigura Fails to Sell Forties Crude; BTC Azeri Exports to Rise

Trafigura Beheer BV failed to sell two cargoes of North Sea Forties blend at lower prices than yesterday. Eni SpA bought Russian Urals at a bigger discount to Dated Brent than the last trade in the Mediterranean.

Daily exports of Azeri Light crude from a port in Turkey will increase by 1 percent in July from June, according to a loading program obtained by Bloomberg News.

North Sea

Trafigura was unable to sell the Forties cargo for loading on June 24 to June 26 at 5 cents a barrel more than Dated Brent, and a second shipment for June 28 to June 30 at a premium of 25 cents, a Bloomberg survey of traders and brokers monitoring the Platts trading window shows. This compares with trades yesterday at premiums of 35 cents and 45 cents.

Statoil ASA didn’t manage to find buyers for a consignment of the grade for July 1 to July 3 at 30 cents more than Dated Brent, while Vitol Group failed to sell the blend for July 4 to July 6 at the same price, the survey shows.

BP Plc sought to buy Forties for June 28 to July 6 without success at 10 cents more than Dated Brent, while Chevron Corp. failed to buy at parity to the benchmark for July 1 to July 7, according to the survey.

Reported crude 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 29 cents a barrel more than Dated Brent, compared with yesterday’s two-month high of a premium of 38 cents, data compiled by Bloomberg show.

Brent for July settlement traded at $97.65 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $99.88 yesterday. The August contract was at $97.27, a discount of 38 cents to July.

Two Flotta cargoes for loading in June were delayed because of lower-than-expected production, according to an official at Talisman Energy Inc., which operates the field.

The first cargo was deferred by 12 days and will load now from June 26 to June 28, while the second originally for June 27 to June 29 will be shipped in July, said the official who declined to be identified citing company policy. Both shipments are for 600,000 barrels each.

Mediterranean/Urals

OAO Lukoil sold Eni 80,000 metric tons of Urals for delivery on June 19 to June 23 to Augusta, Italy, at $2.10 a barrel less than Dated Brent, compared with a discount of $1.95 for the last trade on June 6, the survey showed.

No bids or offers were made for Urals in northwest Europe. The blend was at $1.50 a barrel less than Dated Brent in northwest Europe, the highest since May 18, compared with a discount of $1.90 yesterday, the Bloomberg data show.

Vitol Group sold CPC Blend for June 28 to June 29 to Exxon Mobil Corp. at $3.50 a barrel less than Dated Brent, the survey shows. This compared with a discount of $3.15 for the last transaction on June 1.

Algerian Saharan Blend was at 50 cents a barrel less than Dated Brent today, the lowest since June 2005, according to data compiled by Bloomberg.

“Mediterranean light grades have fallen to exceptionally low levels in recent months as they struggle to cope with structural change,” Johannes Benigni, managing director at the Vienna-based researcher JBC Energy GmbH, said today in an e- mailed report.

Shipments of Azeri Light from the Baku-Tbilisi-Ceyhan pipeline for next month will total 20.75 million barrels, or 669,355 barrels a day, compared with 663,333 this month, the schedule shows.

West Africa

A Mangalore Refinery & Petrochemicals Ltd. tender for 600,000 barrels of low-sulfur crude loading in the second half of July closed today, a document released on May 29 showed.

Nigerian benchmark Qua Iboe crude was at a premium of $2.03 a barrel to Dated Brent, up 1 cent from yesterday, data compiled by Bloomberg show.

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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