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BP Fails to Sell Forties Crude; Two October Cargoes Deferred

BP Plc failed to sell North Sea Forties crude. No bids or offers were made for Russian Urals in Europe for a second day.

Two Forties cargoes for loading in October were deferred by three to nine days, three people with knowledge of the shipping schedule said.

North Sea

BP didn’t manage to sell Forties for Oct. 3 to Oct. 5 loading at 16 cents a barrel more than Dated Brent, 5 cents more than its offer yesterday, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

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 28 cents a barrel less than Dated Brent, compared with a discount of 22 cents yesterday, data compiled by Bloomberg show.

Brent for October settlement traded at $115.94 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $115.13 yesterday. The November contract was $115.38, a discount of 56 cents to October.

Forties consignment F0910 was postponed for a third time after two delays earlier this week, and will now be exported on Oct. 5 to Oct. 7, said the people, declining to be identified because the information is confidential.

Lot F1004 was pushed back by nine days to load on Oct. 17 to Oct. 19, they said. A total of three cargoes for loading in October have been deferred so far.

Vitol Group chartered a tanker to haul North Sea oil to South Korea, the second such fixture to be booked in almost two months, according to two traders with knowledge of the matter.

The company chartered the Suezmax-classed Reef to load Forties crude from Hound Point in the U.K. on Aug. 25 to Aug. 26 and is scheduled to arrive in Daesan, South Korea on Oct. 5, according to ship-tracking data from IHS Inc.

Mediterranean/Urals

Urals was at $1.48 a barrel less than Dated Brent for delivery in the Mediterranean, the lowest since June 27, compared with a discount of $1.45 yesterday, data compiled by Bloomberg showed.

The outlook for Russian oil production for the remainder of the year and 2013 “may not be as promising as recent performance would suggest,” the International Energy Agency said today in its monthly report.

Growth rates of crude output slowed to 1 percent in the third quarter from 1.1 percent in the second quarter, the agency said. “Brownfield declines have regained momentum, blunting the impact of higher contributions from greenfields.”

“After strengthening by 1 percent in 2012, Russian production looks set to decline by 0.5 percent in 2013,” the agency said.

West Africa

Bharat Petroleum Corp. issued a tender to buy crude for loading in November, according to a document obtained by Bloomberg News. The tender closes on Sept. 17 at 3 p.m. local time, with offers valid until 7 p.m. the following day.

Qua Iboe fell 3 cents to $1.63 a barrel more than Dated Brent, according to data compiled by Bloomberg.

Angolan crude output is forecast to increase to 1.9 million barrels a day in the fourth quarter, because of “continued ramp-up of the 220,000 barrels a day Pazflor field and the 140,000 barrels a day Kizomba D satellite fields as well as start‐up of the 150,000 barrels a day PSVM field,” the IEA said in the report.

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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