BP Fails to Sell Forties Crude; Daily North Sea Exports to Rise

BP Plc failed to sell a cargo of Forties blend for loading next month at an unchanged price from its offer on Jan. 11. Total SA bid for the grade without success at 10 cents less than BP’s offer.

Daily exports of the 12 main grades of North Sea crude for loading in February will increase 13 percent to the most in eight months, according to loading programs obtained by Bloomberg News.

North Sea

BP offered Forties lot F0221 for loading Feb. 1 to Feb. 3 at 70 cents a barrel more than Dated Brent, the same level as the previous session, without finding a buyer, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The grade last traded on Jan. 10 at a $1.15 premium.

The consignment was added to the February program, bringing total shipments for next month to 20, said three people with knowledge of the shipping schedule, asking not to be identified as the information is confidential.

Total bid unsuccessfully at 60 cents more than the benchmark for a Jan. 31 to Feb. 5 loading cargo, according to the survey.

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 68 cents to 67 cents a barrel more than Dated Brent, data compiled by Bloomberg show.

Brent for February settlement traded at $110.98 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $110.02 in the previous session. The March contract was at $110.09, a discount of 89 cents to February.

Exports of Flotta crude will be two cargoes of 600,000 barrels in February, one more than this month, according to a loading plan obtained by Bloomberg News.

The first shipment is scheduled for Feb. 4 to Feb. 6 and the second on Feb. 26 to Feb. 28, the plan shows. Talisman Energy Inc. operates the field.

Shipments of Brent, Forties, Oseberg, Ekofisk, Statfjord, Gullfaks, Alvheim, Aasgard, DUC, Flotta, Grane and Troll blends will total 57.7 million barrels, or 2.06 million barrels a day. That compares with a revised 1.83 million barrels this month and 2.1 million in June.

Mediterranean/Urals

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

The Urals differential to Dated Brent in the Mediterranean was unchanged at minus 61 cents, according to data compiled by Bloomberg. In northwest Europe, the discount was unchanged for a second day at $1.14, the data showed.

The Caspian Pipeline Consortium will boost daily crude exports from the Black Sea in February by 11 percent from this month, according to a program obtained by Bloomberg News.

The group, known as CPC, will ship 2.297 million metric tons, compared with 2.288 million tons in January, according to the schedule. That’s equal to about 636,597 barrels a day, up from 572,738 this month.

West Africa

Benchmark Nigerian Qua Iboe blend fell 2 cents to $2.31 a barrel more than Dated Brent, Bloomberg data show.

Indian Oil Corp., the nation’s largest refiner, extended the closing date of a tender to buy crude for loading in March, an amended document obtained by Bloomberg News shows.

The tender will now close at 3 p.m. local time on Jan. 23 with offers valid until 5 p.m. the next day, a week later than originally scheduled, according to the document. IOC had last week purchased four million barrels of West African crude for loading in March.

Oil output in Congo Republic fell 10 percent to 98.6 million barrels last year and averaged about 270,000 barrels per day, Serge Bwiti-Viaudo, chief of staff in the Petroleum Ministry, said today in a statement in the capital, Brazzaville. The nation produces the Djeno and N’Kossa crude grades.

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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