Morgan Stanley Buys North Sea Forties Crude; Shell, Total Bid

Morgan Stanley bought a cargo of North Sea Forties crude from BP Plc at the highest price in more than a week, while Royal Dutch Shell Plc and Total SA placed unsuccessful bids for cargoes.

Supplies from Angola will increase this month while output from Nigeria will fall, according to researcher JBC Energy GmbH.

North Sea

Morgan Stanley paid 45 cents more than Dated Brent for a shipment of Forties, F0108, loading on Jan. 14 to Jan. 16, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That’s the highest since Dec. 20, when a Forties lot traded at a 60 cent premium. BP had bought lot F0108 at parity to the benchmark on Dec. 24.

Shell bid 55 cents more than Dated Brent for a cargo loading on Jan. 14 to Jan. 16 and a second consignment on Jan. 19 to Jan. 21. Total bid 30 cents more than the benchmark for a shipment on Jan. 23 to Jan. 28, according to the survey.

Trafigura Beheer BV offered a consignment of Forties on Jan. 21 to Jan. 28 at 85 cents more than Dated Brent, without finding a buyer.

Reported crude trading typically occurs during the Platts window, which ended at 12:30 p.m. London time today, earlier than its usual finish of 4:30 p.m. because of the New Year holiday. Forties loading in 10 to 25 days was 4 cents less than Dated Brent on Dec. 28, data compiled by Bloomberg show. That compares with a 9 cent discount on Dec. 27.

Brent for February settlement traded at $109.55 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $110 in the previous session. The March contract was at $108.37 a discount of $1.18 to February.

Mediterranean/Urals

There were no bids or offers for Russian Urals grade, according to the Platts survey.

The Urals differential to Dated Brent in the Mediterranean was at minus $1.01 on Dec. 28, according to data compiled by Bloomberg. In northwest Europe, the discount to Dated Brent was at $1.35, the data showed.

West Africa

Qua Iboe blend was at $2.46 a barrel more than Dated Brent on Dec. 28, according to data compiled by Bloomberg.

Angola’s output will increase by 30,000 barrels a day in December with the start of work at the project known as PSVM, while Nigeria’s production will decline by 25,000 barrels a day because of terrorist attacks, according to Vienna-based JBC Energy.

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

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

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