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Shell Buys More North Sea Forties; Chad to Cut May Crude Exports

Royal Dutch Shell Plc (RDSA) bought two cargoes of North Sea Forties crude, bringing its total for the week to four.

Chad plans to reduce exports of its Doba crude in May to two cargoes of 950,000 barrels each, one shipment less than next month, according to a loading program obtained by Bloomberg News.

North Sea

Shell bought Forties lot F0402 from BP Plc (BP/) for loading April 3 to April 5 at 70 cents less than the cash cost of Brent, Forties, Oseberg and Ekofisk for May, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window.

The company also purchased consignment F0410 from Vitol Group for loading April 14 to April 16 at 15 cents less than Dated Brent, the survey showed. The deals compare with the two cargoes it bought on March 18 at discounts of 10 cents and 40 cents to the benchmark.

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 13 cents to a discount of 12 cents a barrel to Dated Brent, according to data compiled by Bloomberg. That’s the highest price since March 6.

Brent for May settlement traded at $107.82 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $108.15 in the previous session. The June contract was at $107.35, a discount of 47 cents to May.

Two Ekofisk cargoes for loading next month were dropped, according to two people with direct knowledge of the matter, who asked not to be identified because the information is confidential.

Shell amended a clause to its contract for trading North Sea crudes to match changes made by Platts, the publisher of the Dated Brent benchmark that is used to price more than half the world’s oil.

The price of Brent crude, one of the four streams that comprise Dated Brent, will no longer be adjusted to take its superior quality into account, Shell said today in a statement on its website.

Mediterranean/Urals

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

The Urals discount to Dated Brent in the Mediterranean narrowed by 23 cents to $1.37 a barrel, data compiled by Bloomberg show. That’s the smallest differential since Feb. 21. In northwest Europe, the discount was at $1.92 a barrel, compared with $1.88 in the previous session.

OAO Surgutneftegas sold two cargoes loading in Baltic ports to Repsol SA and Gunvor Group Ltd., according to two people with direct knowledge of the matter.

Repsol bought one lot to load from Ust-Luga on April 3 to April 4 and Gunvor purchased the other from Primorsk on April 4 to April 5, the people said, asking not to be identified as the information is confidential.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 5 cents to $3.24 a barrel more than Dated Brent, Bloomberg data show. That’s the lowest since Feb. 28.

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

To contact the editor responsible for this story: Justin Carrigan at jcarrigan@bloomberg.net

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