BP Offers Forties at Two-Week Low; Azeri Crude Exports Stable

BP Plc failed to find a buyer for a cargo of North Sea Forties crude for loading in February at the lowest differential in almost two weeks. Total SA bought a lot of Brent blend at a cheaper premium than the previous trade.

Daily exports of Azeri Light crude from the Turkish port of Ceyhan will be little changed in February from this month, according to a loading program obtained by Bloomberg News.

North Sea

BP offered Forties consignment F0201 for loading Feb. 1 to Feb. 3 at 70 cents a barrel more than Dated Brent, without finding a buyer, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That compares with a lot that traded yesterday at a $1.15 premium and is the lowest since a deal at plus 45 cents on Dec. 31.

Royal Dutch Shell Plc sold Brent cargo B0106 for loading Jan. 25 to Jan. 27 at 70 cents more than Dated Brent, the survey showed. That’s lower than a deal on Jan. 4 at a $1.35 premium and is the cheapest since a trade on Sept. 6 at minus 25 cents.

Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Forties loading in 10 to 25 days dropped 18 cents to $1.35 a barrel more than Dated Brent, data compiled by Bloomberg show.

Brent for February settlement traded at $110.02 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $112.27 in the previous session. The March contract was at $109.30, a discount of 72 cents to February.

Mediterranean/Urals

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

The Urals differential to Dated Brent in the Mediterranean was at minus 61 cents, 5 cents narrower than yesterday, according to data compiled by Bloomberg. In northwest Europe, the discount was unchanged at $1.14, the data showed.

Shipments from Ceyhan will total 17.85 million barrels, or 637,500 barrels a day, according to the plan. That compares with 639,000 barrels a day for this month.

The 1,768-kilometer (1,100-mile) Baku-Tbilisi-Ceyhan pipeline carries Azeri Light crude from Baku, in the Azeri section of the Caspian Sea, through Georgia to Ceyhan, on Turkey’s Mediterranean coast.

West Africa

Benchmark Nigerian Qua Iboe blend fell 3 cents to $2.33 a barrel more than Dated Brent, Bloomberg data show.

Nigeria postponed to February one Qua Iboe cargo that was originally scheduled to load this month and delayed three lots of its benchmark grade to March from next month, according to a revised plan obtained by Bloomberg News. Total exports of the grade next month will now by 10 shipments, the plan showed.

Indian Oil Corp., the nation’s largest refiner, issued a second tender to buy West African crude for March loading, a document obtained by Bloomberg News shows.

The tender, which was released today, closes at 3 p.m. local time on Jan. 16 with offers valid until 5 p.m. the next day, according to the document.

The company bought one shipment each of Nigerian Qua Iboe and Okoro from BP and awarded China International United Petroleum & Chemical Corp., known as Unipec, one lot each of Antan and Angolan Nemba blend earlier this week.

In Ghana, the Jubilee oil field capacity is now in excess of 120,000 barrels of oil a day, allowing for tests of pumping equipment in the next few weeks, Tullow Oil Plc said. The company expects floating production vessel output to increase to about 130,000 barrels by October after improving gas handling operations.

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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