Shell Offers Forties Oil; Glencore Sells Urals at Five-Month Low
Royal Dutch Shell Plc failed to sell a North Sea Forties crude cargo at a lower price than the previous trade. Glencore International Plc sold Russian Urals blend in northwest Europe at the lowest level in five months.
Daily exports of the 12 main grades of North Sea crude for loading in October will climb to the highest level in four months as fields return from planned maintenance.
Shell failed to sell Forties lot F0910 for Oct. 1 to Oct. 3 loading at 5 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.
The cargo was deferred by four days, according to three people with knowledge of the loading program. Shell bought it on Sept. 7 at a premium of 20 cents.
BP Plc didn’t manage to sell Forties for Oct. 3 to Oct. 5 at 30 cents a barrel more than Dated Brent, the survey showed.
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 5 cents a barrel less than Dated Brent, compared with a discount of 36 cents on Sept. 7, data compiled by Bloomberg show.
Brent for October settlement traded at $114.51 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $113.82 on Sept. 7. The November contract was $114.04, a discount of 47 cents to October.
Exports of Brent, Forties, Oseberg, Ekofisk, Statfjord, Gullfaks, Alvheim, Aasgard, DUC, Flotta, Grane and Troll blends will total 61.7 million barrels, or 1.99 million barrels a day, the most since June, according to loading programs obtained by Bloomberg News. This compares with a revised 1.62 million barrels a day this month.
Loadings of Flotta crude will increase to two cargoes of 650,000 barrels each in October, one more than September, according to a loading schedule obtained by Bloomberg News.
Glencore sold 100,000 metric tons of Urals for loading on Sept. 20 to Sept. 24 to Statoil ASA at $2.55 a barrel less than Dated Brent on a delivered basis to Rotterdam, the lowest level since April 12, according to the survey. This compares with a discount of $1.35 for the last trade on Aug. 23.
No bids or offers were made for Urals in the Mediterranean. The blend was at $1.03 a barrel less than Dated Brent for delivery in the region, down from a discount of 66 cents on Sept. 7, data compiled by Bloomberg showed.
The Caspian Pipeline Consortium will increase daily crude exports from the Black Sea in September to the highest in 15 months, a revised loading program obtained by Bloomberg News showed.
The group, known as CPC, will ship 27 cargoes totaling 2.63 million tons, according to the schedule. That’s equal to 20.5 million barrels, or 682,336 barrels a day, the most since June 2011, and 21 percent more than the 562,749 barrels a day that was to be exported in August.
This is also an increase from the 2.54 million tons, or 658,119 barrels a day that was scheduled in the preliminary program released on Aug. 10.
Iran reduced its October crude price differentials for customers in Europe, according to an official at National Iranian Oil Co.
Saudi Arabian Oil Co. will supply full volumes in October to customers in Europe, unchanged from this month, according to refinery officials with knowledge of the matter.
Qua Iboe rose 8 cents to $1.72 a barrel more than Dated Brent, according to data compiled by Bloomberg.
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