BP Sells Brent Crude; October BFOE Exports to Increase by 18%

BP Plc sold a North Sea Brent crude cargo, the first trade in 19 months. Total SA bid for Forties at a higher price than yesterday. OAO Lukoil failed to sell Russian Urals blend in the Mediterranean at a lower price.

Daily exports of Brent, Forties, Oseberg and Ekofisk crudes, which make up the Dated Brent benchmark, will increase 18 percent in October from this month, loading programs obtained by Bloomberg News show.

North Sea

BP sold the Brent lot for Sept. 20 to Sept. 22 loading to Royal Dutch Shell Plc at 25 cents a barrel less than Dated Brent, the first transaction since Jan. 27, 2011, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. BP has sold a total of eight cargoes of Brent, Forties and Ekofisk for shipment in September.

BP failed to sell a consignment of Oseberg for Sept. 29 to Oct. 1 at 55 cents a barrel more than Dated Brent, 15 cents less than its offer yesterday, the survey showed.

Total didn’t manage to buy any cargoes of Brent, Forties, Oseberg or Ekofisk for Sept. 22 to Oct. 2 at parity to Dated Brent, the survey showed. The company was bidding for Forties at a 5 cent discount yesterday.

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 42 cents a barrel less than Dated Brent, the lowest since June 27, compared with a discount of 26 cents yesterday, data compiled by Bloomberg show.

Brent for October settlement traded at $114.77 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $113.68 yesterday. The November contract was $114.36, a discount of 41 cents to October.

Exports of Brent, Forties, Oseberg and Ekofisk will average 870,968 barrels a day versus 740,000 barrels a day in September, according to the plans.

Forties loadings will rise to 309,677 barrels a day, up from 200,000 barrels a day this month, the lowest level in at least five years, a schedule showed.

Exports of Troll will increase to 14 cargoes of 600,000 barrels each in October, compared with five lots this month, while loadings of Alvheim will be unchanged at five 780,000 barrel shipments, according to programs.

Maersk Oil, a unit of Moeller-Maersk A/S, halted some of its oil and natural gas output following unplanned repairs.

“Due to unplanned maintenance work, Maersk Oil had to shut down some of its oil and gas production in the Danish North Sea, leading to a cut of 100,000 barrels a day of oil production and 300 million standard cubic feet a day of gas production for six days,” the company said today in a statement.

Crude exports from Dansk Undergrunds Consortium, the producer part-owned by Maersk, will be reduced to four cargoes of 600,000 barrels each in October, one less than September, the plan showed.

Mediterranean/Urals

Lukoil didn’t manage to sell 80,000 metric tons of Urals for loading on Sept. 18 to Sept. 22 at 65 cents a barrel less than Dated Brent, 10 cents less than its offer yesterday, according to the survey.

Urals advanced 10 cents to a discount of 66 cents a barrel to Dated Brent for delivery in the Mediterranean, data compiled by Bloomberg showed.

Rosneft Trading SA failed to buy 600,000 barrels of Azeri Light for Sept. 30 to Oct. 4 at $2.60 a barrel more than Dated Brent, the survey showed.

Saudi Arabian Oil Co. reduced its October official selling price for Arab Light crude from the Egyptian port of Sidi Kerir, two people with knowledge of the matter said.

Saudi Aramco, as the state-run producer is known, cut the differential of Arab Light by $1.05 to a discount of 45 cents a barrel to the Brent weighted average, or BWAVE, posted by the Intercontinental Exchange, said the people, who declined to be identified because the information is confidential.

West Africa

Nigerian benchmark Qua Iboe rose 2 cents to $1.66 a barrel more than Dated Brent, according to data compiled by Bloomberg.

Petrolin Trading Ltd., which has a stake in the Rabi Light oil field in Gabon, sold 650,000 barrels of the grade for loading on Oct. 17 to Oct. 18 to Exxon Mobil Corp., said two traders who declined to be identified because the information is confidential.

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

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.