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BP Buys North Sea Forties Crude; Glencore Sells Russian Urals

BP Plc bought a cargo of North Sea Forties crude at the lowest differential in three weeks. Glencore International Plc sold a consignment of Russian Urals blend at a bigger discount than the previous trade.

Iraq plans to reduce exports of its Kirkuk crude in January from the Turkish port of Ceyhan to 18 cargoes, one less than this month, a loading program obtained by Bloomberg News showed.

North Sea

Vitol Group sold Forties lot F0108 at parity to Dated Brent to BP, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That compares with a trade at a premium of 25 cents on Dec. 21 and is the lowest since Dec. 3.

Reported crude trading typically occurs during the Platts window, which ended today at 12:30 p.m. London time due to Christmas. It typically ends at 4:30 p.m. Before the session, Forties loading in 10 to 25 days fell 34 cents to 24 cents more than Dated Brent, data compiled by Bloomberg show.

Brent for February settlement traded at $108.31 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $108.77 in the previous session. The March contract was at $107.48 a discount of 83 cents to February.

Mediterranean/Urals

Statoil ASA purchased 100,000 metric tons of Urals for loading Jan. 9 to Jan. 13 at a discount of $1.30 a barrel to Dated Brent on a delivered basis to Rotterdam, the Platts survey showed. That compares with a deal on Dec. 20 at 50 cents less than the benchmark and is the lowest since Nov. 16.

Vitol failed to sell 140,000 tons of Urals in the Mediterranean at a discount of $1.15 to Dated Brent on a delivered basis to Augusta, Italy, according to the Platts survey. That is 20 cents less than the company’s offer in the previous session, which was also unsuccessful.

The Urals differential to Dated Brent in the Mediterranean widened 34 cents to minus 59 cents, according to data compiled by Bloomberg. In northwest Europe, the discount to Dated Brent increased 4 cents to 81 cents, the data showed.

OAO Rosneft, Russia’s largest oil producer, agreed to a prepaid long-term crude supply accord with Glencore International Plc and Vitol Group.

The deal is for as much as 67 million tons of crude for five years from the start of next year, Rosneft said in a statement posted on its website. That’s 270,000 barrels a day or about 11 percent of the Russian producer’s current output.

West Africa

CPC Corp., a Taiwan state-run oil company, bought four cargoes of Angolan crude, according to two traders with knowledge of the matter.

The refiner purchased three lots of Cabinda and one Nemba grade, the traders said, declining to be identified as the information is confidential. Total SA, Sonangol Holdings and Eni SpA sold the Cabinda while Phillips 66 sold the Nemba, one of the people said. Each consignment is for 1 million barrels.

Qua Iboe blend dropped 7 cents to $2.54 a barrel more than Dated Brent, according to data compiled by Bloomberg.

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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