Mercuria Buys Forties Oil; Surgut Sells Urals to Shell, Statoil

Mercuria Energy Trading SA bought a cargo of North Sea Forties while Total SA and Morgan Stanley sought to buy the blend without success. No bids or offers were shown for Russian Urals crude for a second day.

OAO Surgutneftegas, a Russian oil producer, sold three Urals cargoes of 100,000 metric tons each via a tender to Royal Dutch Shell Plc and Statoil ASA for loading from the Baltic Sea port of Primorsk, according to three traders who participate in the market.

North Sea

Vitol Group sold one cargo with parcel number F0710 for July 17 to July 19 loading to Mercuria at 65 cents a barrel less than the cash cost of North Sea crudes for September, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

The shipment was delayed by a day, after having been deferred by one day last month from the originally planned July 15 to July 17, two people with knowledge of the shipping schedule said.

Total failed to buy a shipment for Forties for July 22 to July 29 at 5 cents a barrel less than Dated Brent, the highest bid since June 8, and another for July 15 to July 20 at a discount of 20 cents to the benchmark, the survey showed.

Morgan Stanley didn’t manage to buy two Forties cargoes. A shipment for July 16 to July 22 was bid at 15 cents a barrel less than Dated Brent and a consignment for July 22 to July 28 at a discount of 10 cents, 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 33 cents a barrel less than Dated Brent, compared with a discount of 34 cents on June 29, data compiled by Bloomberg show.

Brent for August settlement traded at $95.91 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $95.30 on June 29. The September contract was at $95.75, a discount of 16 cents to August.

Statoil shut production from the Gullfaks A oil platform in the North Sea after ballast water leaked into a utility shaft yesterday, Ola Anders Skauby, a company spokesman, said in an e- mail on June 29.

“It is expected that it will take some days to repair the leak,” he said in the e-mail.

A strike by oil and gas workers in Norway entered a second week, disrupting about 15 percent of crude supply from western Europe’s largest exporter.

No talks between unions and industry representatives are scheduled, Jan Hodneland, chief negotiator for the Norwegian Oil Industry Association, said today by phone from Stavanger. The action, which is over pensions, may continue for days, he said.

Mediterranean/Urals

Urals was at 72 cents a barrel less than Dated Brent, compared with a four-month high of a discount of 45 cents a barrel on June 29, Bloomberg data show.

Shell got one Urals cargo from Surgutneftegas for July 22 to July 23 and one for July 27 to July 28, while Statoil was awarded a shipment for July 24 to July 25, according to the people, who declined to be identified because the information is confidential.

Three cargoes of Urals were dropped from the loading program for July, according to three people with knowledge of the loading program.

One shipment of 140,000 tons for July 19 to July 20 loading from the Black Sea port of Novorossiysk and two 100,000-ton consignments for July 14 to July 15 and July 23 to July 24 from Primorsk were canceled, said the people, who declined to be identified because the information is confidential. All three cargoes were owned by TNK-BP.

West Africa

Qua Iboe was unchanged today at a 20-month low of a premium of $1.30 on June 29, 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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