Shell Buys Forties Crude; Angola to Export 40 February Cargoes

Royal Dutch Shell Plc bought a cargo of North Sea Forties crude at the highest premium in about six weeks. Socar Trading SA sold two lots of Azeri Light blend.

Angola, Africa’s second-largest oil producer, will export 40 consignments of crude in February, a partial loading program obtained by Bloomberg News showed. The plan excludes Palanca, Saturno and Plutonio grades.

North Sea

BP Plc sold Forties lot F1216 for loading Dec. 29 to Dec. 31 at 65 cents a barrel more than Dated Brent, according to a survey of traders and brokers monitoring the Platts pricing window. That’s 5 cents higher than when the same cargo traded on Dec. 12 and matches a deal on Nov. 8.

Shell and Statoil ASA failed to buy the blend for loading next month, the survey showed. Shell bid at a premium of 80 cents to Dated Brent for Jan. 8 to Jan. 10, while Statoil didn’t find a seller at plus 65 cents for Jan. 8 to Jan. 11.

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 dropped 3 cents to 73 cents more than Dated Brent, data compiled by Bloomberg show.

Brent for February settlement traded at $108.07 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $107.63 in the previous session. The March contract was at $107.19, a discount of 88 cents to February.

A Forties cargo for export in December was postponed for a third time, according to two people with knowledge of the loading program. Consignment F1205 will now be shipped on Dec. 17 to Dec. 19 and will co-load with lot F1208, said the people, declining to be identified because the information is confidential.

Exports of Flotta crude will be one cargo of 650,000 barrels in January, unchanged from this month, a loading plan obtained by Bloomberg News showed.

The shipment is set to load Jan. 16 to Jan. 18, according to the plan. Talisman Energy Inc. operates the field.

Mediterranean/Urals

Total SA bought two shipments of 600,000 barrels each of Azeri crude, the Platts survey showed. Socar sold the cargoes, on a delivered basis to Augusta in Italy from Jan. 4 to Jan. 8, at premiums of $3.20 and $3.25 to Dated Brent.

The Urals differential to Dated Brent in the Mediterranean was unchanged at minus 26 cents, according to data compiled by Bloomberg. In northwest Europe, the discount to Dated Brent widened 5 cents to $1, the data showed.

West Africa

Angola will export 1.37 million barrels a day in February, according to the partial program. That’s down from 1.8 million barrels, or 59 cargoes, in January, a final loading program for that month showed. Each lot is for about 950,000 barrels.

Seven shipments of Plutonio, two consignments of Saturno and one of Palanca are set to be exported next month, according to the January program.

Qua Iboe blend fell 2 cents to at $2.63 a barrel more than Dated Brent, according to data compiled by Bloomberg. That’s close to an eight-month high at $2.72 on Dec. 10.

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

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