BP Sells Forties Oil at Four-Month Low; Oseberg Exports to Rise

BP Plc sold a North Sea Forties crude cargo at the lowest price in more than four months. OAO Lukoil sought to sell Russian Urals blend in the Mediterranean without success.

Exports of North Sea Oseberg grade for October are planned at eight cargoes of 600,000 barrels each, one more than this month, a loading program obtained by Bloomberg News showed.

North Sea

BP sold Forties lot F0907 for Sept. 18 to Sept. 20 loading to Lukoil at 75 cents a barrel less than Dated Brent, the lowest since April 19, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. BP sold one cargo at a premium of 15 cents and another at a discount of 30 cents on Aug. 31.

BP failed to sell a second consignment for Sept. 27 to Sept. 29 at 20 cents a barrel more than Dated Brent, unchanged from its offer yesterday, the survey showed. Total SA didn’t manage to buy the crude for Sept. 26 to Sept. 30 at 5 cents less than Dated Brent, 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 26 cents a barrel less than Dated Brent, the lowest since July 27, compared with a discount of 14 cents yesterday, data compiled by Bloomberg show.

Brent for October settlement traded at $113.68 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $114.89 yesterday. The November contract was $113.25, a 43 cent discount to October.

BP sold an Ekofisk cargo for Sept. 19 to Sept. 21 to Trafigura Beheer BV at parity to Dated Bent and failed to sell a second shipment of the blend for Sept. 22 to Sept. 24 at a premium of 45 cents a barrel, the survey showed.

The London-based company didn’t find buyers for Oseberg loading from Sept. 29 to Oct. 1 at 70 cents a barrel more than Dated Brent, according to the survey.

Nexen Inc. shut the Buzzard oil field, the biggest contributor to Forties, yesterday for planned maintenance.

“Production has been shut in,” Patti Lewis, a Calgary- based spokeswoman, said today in an e-mailed response to questions from Bloomberg News. “The maintenance turnaround began yesterday, as scheduled.”

Mediterranean/Urals

Lukoil failed to sell 80,000 metric tons of Urals for Sept. 18 to Sept. 22 loading at 55 cents a barrel less than Dated Brent, according to the survey. This compares with a discount of 70 cents for a trade on Aug. 23.

Urals advanced 6 cents to a discount of 76 cents a barrel to Dated Brent for delivery in the Mediterranean, data compiled by Bloomberg show.

Saudi Arabian Oil Co. cut its official selling price for Arab Light to the Mediterranean to a discount of 90 cents for October from a premium of 15 cents, according to a person familiar with the pricing decision.

The state-owned producer, known as Saudi Aramco, also reduced the differential for Arab Light to northwest Europe, the person said.

West Africa

Nigerian benchmark Qua Iboe rose 1 cent to $1.64 a barrel more than Dated Brent, according to data compiled by Bloomberg.

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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