Shell Bids for North Sea Forties; Surgut Offers Urals Crude

Royal Dutch Shell Plc (RDSA) failed to buy North Sea Forties crude while BP Plc offered the grade unsuccessfully.

OAO Surgutneftegas, Russia’s fourth-biggest oil producer, issued a tender to sell two cargoes of Urals for loading next month, according to two people with knowledge of the matter.

North Sea

Shell bid for Forties for loading April 3 to April 7 at 15 cents less than Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That compares with the two cargoes it bought yesterday at discounts of 10 cents and 40 cents to the benchmark.

BP did not find a buyer for Forties loading April 3 to April 5 at 50 cents less than the cash cost of Brent, Forties, Oseberg and Ekofisk for May, the survey showed.

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 narrowed by 3 cents to a discount of 25 cents a barrel to Dated Brent, according to data compiled by Bloomberg. That’s the smallest discount since March 7.

Brent for May settlement traded at $108.15 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $109 in the previous session. The June contract was at $107.71, a discount of 44 cents to May.

Buzzard’s share in Forties rose to 40 percent for the week to March 17, BP said on its website. That’s up from 39 percent in the previous week and is the most since Feb. 10.

Mediterranean/Urals

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

The Urals discount to Dated Brent in the Mediterranean narrowed by 22 cents to $1.38 a barrel, data compiled by Bloomberg show. That’s the smallest differential since Feb. 21. In northwest Europe, the discount was at $1.90 a barrel, compared with $1.88 in the previous session.

Surgut is offering one lot to load from Ust-Luga on April 3 to April 4 and the other from Primorsk on April 3 to April 4, the people said, asking not to be identified as the information is confidential.

OAO Zarubezhneft is seeking to buy a consignment of the grade for delivery to Omisalj in Croatia from April 13 to April 17, the people said.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 3 cents to $3.26 a barrel more than Dated Brent, Bloomberg data show. That’s the lowest since Feb. 28.

Bharat Petroleum Corp., India’s second-biggest state refiner, issued a tender to buy low-sulfur crude for loading in the first half of May, according to a document obtained by Bloomberg News.

CPC Corp., a Taiwan state-run oil company, issued a tender to buy low-sulfur crude for loading in May or delivery in June, according to a document obtained by Bloomberg News.

To contact the reporter on this story: Rupert Rowling in London at rrowling@bloomberg.net

To contact the editor responsible for this story: Raj Rajendran at rrajendran4@bloomberg.net

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