Statoil Buys Urals at Higher Price; Basrah Light Exports to Gain

Statoil ASA bought a cargo of Russian Urals crude for delivery to Rotterdam at a smaller discount to Dated Brent than the previous trade. There were no bids or offers for North Sea Forties blend.

Iraq will increase its daily exports of Basrah Light grade from the Persian Gulf by 4.3 percent in the second half of September from two weeks earlier, a loading program obtained by Bloomberg News showed.

North Sea

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

Brent for October settlement traded at $116.58 a barrel on the ICE Futures Europe exchange in London at the close of the window, up from $115.94 yesterday. The November contract was $115.70, a discount of 88 cents to October.

Royal Dutch Shell Plc and Total SA provisionally chartered two supertankers to transport North Sea crude to South Korea, the first such shipment in almost two months, according to two maritime brokers.

Chartering and Shipping Services SA, a shipping unit of Total, booked the very large crude carrier Athina for Oct. 10 from Hound Point, the loading terminal for Forties, to South Korea at a cost of $4.75 million. Shell will pay $5 million for a VLCC operated by Nova Tankers for the same period. Kevin Sy, a Singapore-based freight-derivatives broker at Marex Spectron Group and Optima Shipbrokers Ltd. in Athens reported the fixtures that are subject to change.

BP Plc sold its 18 percent share in the Draugen field in the Norwegian Sea to Shell for $240 million, the company said today in a statement. BP’s stake equated to 6,000 barrels of oil equivalent per day.

Mediterranean/Urals

Shell sold the 100,000 metric ton cargo of Urals for loading on Oct. 1 to Oct. 5, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. The trade was done at $1.85 a barrel less than Dated Brent on a delivered basis to Rotterdam, which compares with a deal on Sept. 10 at a $2.55 discount.

Total failed to buy the grade for loading on Sept. 23 to Sept. 27 at $2.55 less than Dated Brent, the survey showed. Petraco Oil Co. bid unsuccessfully at a discount of $2.50 to Dated Brent for a cargo for loading on Oct. 3 to Oct. 7. There were no bids or offers for Urals in the Mediterranean.

Urals was unchanged at $1.48 a barrel less than Dated Brent for delivery in the Mediterranean, the lowest since June 27, data compiled by Bloomberg showed.

Vitol Group bid for 85,000 tons of Kazakh CPC blend for loading on Oct. 4 to Oct. 8 at 60 cents a barrel less than Dated Brent, according to the survey.

Iraq will ship 21 cargoes from the Basrah Oil Terminal, compared with 20 in the first half of September, the plan showed. Exports will total 31.6 million barrels, or 2.11 million barrels a day, compared with 2.02 million two weeks earlier.

The schedule for the second half of September comprises nine lots of 2 million barrels each, nine 1 million-barrel shipments, two of 1.95 million, and one of 715,000 barrels.

Exports of Azeri Light crude from Georgia’s Black Sea port of Supsa will drop to four consignments, each of 600,000 barrels, in October, one less than this month, according to a loading schedule obtained by Bloomberg News.

West Africa

Mangalore Refinery & Petrochemicals Ltd. is seeking to buy 600,000 barrels of low-sulfur crude for loading in November, according to a tender document obtained by Bloomberg News.

The tender closes at 9:30 a.m. local time on Sept. 18 with offers valid until 8 p.m. on Sept. 21, the document showed.

Qua Iboe fell 1 cent to $1.62 a barrel more than Dated Brent, according to data compiled by Bloomberg.

To contact the reporters on this story: Rupert Rowling in London at rrowling@bloomberg.net; 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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