Fifth October Forties Crude Deferred; Socar Fails to Sell Azeri

There were no bids or offers in the North Sea Forties market. One cargo of the benchmark crude cargo for loading in October was delayed by two days, bringing total deferrals for next month to five, according to two people with knowledge of the loading program.

State Oil Co. of Azerbaijan, or Socar, failed to sell a lot of Azeri blend. OAO Surgutneftegas, Russia’s fourth-largest oil producer, sold three Urals cargoes totaling 345,000 metric tons for loading next month to Statoil ASA and Talmay Trading, according to three traders who participate in the market.

North Sea

Forties consignment F1011 will now be exported on Oct. 22 to Oct. 24, said the people, declining to be identified because the information is confidential.

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

Brent for November settlement traded at $111.65 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $109.05 yesterday. It had earlier risen as much as 2.1 percent. The December contract was at $110.76, a discount of 89 cents to November.

Mediterranean/Urals

Socar failed to find a buyer of 600,000 barrels of Azeri Light for Oct. 18 to Oct. 22 loading from Supsa on the Black Sea at $3 a barrel more than Dated Brent, on a delivered basis to Augusta, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window.

Statoil was awarded two Urals cargoes of 100,000 tons each from the Baltic Sea, one for Oct. 15 to Oct. 16 from Primorsk and the other for Oct. 12 to Oct. 13 from Ust-Luga, the people said, declining to be identified because the information is confidential.

Talmay got a shipment for 145,000 tons for Oct. 15 to Oct. 16 loading from the Black Sea port of Novorossiysk, they said.

Sonatrach, the Algerian state-run oil producer, raised its official selling price for benchmark Saharan Blend crude for loading in October to 20 cents a barrel less than Dated Brent, according to an e-mailed price list from the company. This compares with a discount of 80 cents for September.

Sudan and South Sudan agreed to set up a demilitarized buffer zone along their border and resume oil exports while leaving the issue of the disputed region of Abyei for future.

“The timeline for a full resumption of the 350,000 barrels a day production is quite long and might last anywhere from six to 12 months, with the latter looking like the more probable estimate,” David Wech, managing director at Vienna-based researcher JBC Energy GmbH, said today in an e-mailed report.

Urals was at $1.74 a barrel less than Dated Brent for delivery in northwest Europe, up 1 cent from yesterday, data compiled by Bloomberg showed.

West Africa

Uruguay’s state oil and gas company Administracion Nacional de Combustibles Alcohol y Portland, known as Ancap, issued a tender to buy as much as 1 million barrels of crude for delivery Dec. 1 to Dec. 5, a document obtained by Bloomberg News showed.

The tender closes tomorrow at 10 a.m. Uruguay time, and offers must remain valid until 6 p.m. Earlier this month, the company bought 1 million barrels of Nigerian Bonga grade for loading next month from Vitol Group, according to three traders with knowledge of the matter.

Hindustan Petroleum Corp., India’s third-largest state refiner, bought via a tender from Glencore International Plc 2 million barrels of Nigerian crude, said three traders with knowledge of the matter.

Glencore sold Qua Iboe for loading in November, according to the traders, who asked not to be identified because the information is confidential. Hindustan Petroleum paid $2.60 to $2.80 a barrel premium to Dated Brent, two of the traders said.

Qua Iboe rose 3 cents to $1.86 a barrel more than Dated Brent, according to data compiled by Bloomberg. That’s the highest since June 12.

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

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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.