BP Buys Russian Urals Crude; Six Angola March Cargoes Available

BP Plc bought a cargo of Russian Urals crude at a larger discount than the previous deal. There were no bids or offers for North Sea grades.

Six Angolan crude cargoes for loading in March, about 11 percent of scheduled volumes, still haven’t been sold, five traders who participate in the market said, adding that that’s fewer than normal at this stage of the month.

North Sea

There were no bids or offers for North Sea grades for the first time since Jan. 19, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

A third Forties crude cargo has been added to the February program, bringing the total for this month to 20, two people with knowledge of the shipping schedule said.

Forties consignment F0222 will load on Feb. 26 to Feb. 28, the people said, asking not to be identified because the information is confidential.

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 fell 7 cents to 58 cents a barrel more than Dated Brent, data compiled by Bloomberg show.

Brent for March settlement traded at $116.84 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $115.20 in the previous session. The April contract was at $115.87, a discount of 97 cents to March.

Mediterranean/Urals

Gunvor Group Ltd. sold the 100,000 metric-ton cargo of Urals grade to BP for loading Feb. 13 to Feb. 17 at $1.55 less than Dated Brent on a delivered basis to Rotterdam, the Platts survey showed. That compares with a Jan. 25 deal at a 90 cent discount, data compiled by Bloomberg show.

In the Mediterranean, OAO Lukoil’s Litasco offered 140,000 tons of Urals at $1 less than Dated Brent on a delivered basis to Augusta, Italy, the survey showed.

Socar Trading SA failed to find a buyer for 600,000 barrels of Azeri Light for loading Feb. 11 to Feb. 15 at a $3.10 premium to the benchmark, according to the survey.

The Urals discount to Dated Brent in the Mediterranean widened by 10 cents a barrel to 35 cents, according to data compiled by Bloomberg. In northwest Europe, the discount was at 96 cents, compared with 86 cents yesterday, the data show.

Crude exports from Caspian Pipeline Group via Novorossiysk fell by 4.3 percent to 19.604 million barrels in January versus 20.482 million barrels a year earlier, the company said today on its website.

OAO Rosneft agreed a deal with PKN Orlen SA to supply 6 million tons of oil a year, according to a company statement. The deal runs through January 2016.

West Africa

Benchmark Nigerian Qua Iboe blend fell 4 cents to $2.33 a barrel more than Dated Brent, Bloomberg data show.

Unsold Angolan grades for export next month include two shipments of Kissanje and one each of Cabinda, Girassol, Kuito and Nemba, the people said, asking not to be identified because the information is confidential. The size of the lots ranges from 920,000 barrels to 1 million barrels. Five February cargoes hadn’t been sold as of Jan. 9, three traders said at the time.

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

The tender, which was released today, closes at 3 p.m. local time on Feb. 6 with offers valid until 5 p.m. the next day, according to the document. The company seeks crude from West Africa among other locations.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.