Forties Crude at 11-Month Low; Nigeria to Boost Exports in May

North Sea Forties crude fell to the lowest in 11 months as Royal Dutch Shell Plc (RDSA) sold. BP Plc failed to sell Russian Urals and Algerian Saharan Blend.

Nigeria, Africa’s largest oil producer, will boost crude exports to 71 cargoes in May, according to a partial loading program obtained by Bloomberg News that includes 16 grades.

North Sea

Shell sold Forties for loading on April 13 to April 15 to Morgan Stanley at 75 cents a barrel less than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares with a trade in the previous session at minus 75 cents to the cash cost of Brent, Forties, Oseberg and Ekofisk for June and matches the lowest deal since April 19, according to data compiled by Bloomberg.

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 widened by 28 cents to a discount of 62 cents a barrel to Dated Brent, according to data compiled by Bloomberg. That’s the lowest since April 23.

Brent for May settlement traded at $107.71 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $107.39 in the previous session. The June contract was at $107.33, a discount of 38 cents to May.

Mediterranean/Urals

BP failed to sell Urals at $2.15 a barrel less than Dated Brent on a delivered basis to Rotterdam, the Platts survey showed. Shell also offered the grade unsuccessfully at $2.10 less than the benchmark. Those compare with a Feb. 25 trade at minus $2.75.

BP offered either 600,000 barrels or 1 million barrels of Saharan Blend at 80 cents more than Dated Brent to be loaded on April 4 to April 8 from Algeria, according to the survey.

The Urals discount to Dated Brent in the Mediterranean narrowed by 32 cents to 99 cents a barrel, data compiled by Bloomberg show. That’s the smallest differential since Feb. 15. In northwest Europe, the discount was at $1.89 a barrel, compared with minus $1.97 in the previous session.

Russia plans to ship 1.95 million barrels a day of Urals from two export terminals on the Baltic Sea in April, according to a preliminary loading program obtained by Bloomberg News.

Primorsk will export 57 cargoes and Ust-Luga plans to ship 23 cargoes, according to the schedule. Cargoes at the ports are 100,000 metric tons each.

Iraq plans to increase exports of its Kirkuk crude in April from the Turkish port of Ceyhan to 19 cargoes, nine more than this month, according to a loading program obtained by Bloomberg News.

Shipments will total 10.81 million barrels, or 360,333 barrels a day, the plan showed. That compares with 289,677 barrels planned for March.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 1 cent to $3.19 a barrel more than Dated Brent, Bloomberg data show. That’s the lowest since Feb. 28.

Nigeria will ship 11 consignments of Qua Iboe, nine of Forcados, eight each of Bonny Light and Agbami, five each of Akpo, Bonga and Brass River, four of Erha, three each of Amenam, Escravos and Yoho, two lots of Abo and Okwori, and one each of EA Blend, Okono and Pennington, the plans showed.

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

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.