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BP Fails to Sell North Forties; Azeri Crude Exports Drop in May

BP Plc failed to sell North Sea Forties crude while Glencore International Plc (GLEN) bid unsuccessfully for the grade.

Shipments of Azeri Light blend from Georgia’s Black Sea port of Supsa in May will be two cargoes of 600,000 barrels each, down from four lots this month, according to two traders with knowledge of the loading plan.

North Sea

BP offered Forties for loading May 1 to May 3 at $1.15 discount to the cash cost of Brent, Forties, Oseberg and Ekofisk for June, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window.

Glencore bid for May 4 to May 8 cargo at 50 cents less than Dated Brent, the survey showed. That compares with a deal on April 11 at minus 60 cents.

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 39 cents to a discount of 23 cents a barrel to Dated Brent, according to data compiled by Bloomberg. That’s the least since April 8.

Brent for May settlement traded at $100.47 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $101.66 in the previous session. The June contract was $100.47 at the same time today, at parity to May.

The Buzzard share in Forties blend dropped to 45 percent for the week ending April 7, from 46 percent a week earlier, BP said on its website.

Mediterranean/Urals

Petraco SpA failed to buy Russian Urals even as it bid at a higher level than the previous trade, the survey of brokers monitoring Platts showed. The company bid at a discount of $1.85 a barrel to Dated Brent on a delivered basis to Rotterdam, that’s 10 cents more than the deal on April 9.

Total SA also bid unsuccessfully for the grade at $2.15 less than the benchmark, according to the survey.

The Urals discount to Dated Brent in the Mediterranean narrowed by 2 cents to 61 cents a barrel, data compiled by Bloomberg show. That was the least since Feb. 1. In northwest Europe, the discount was at $2.07 a barrel compared with $2.09 at the previous session’s close.

West Africa

Benchmark Nigerian Qua Iboe blend dropped 20 cents to $3.15 a barrel more than Dated Brent, data compiled by Bloomberg show.

Nigeria’s Movement for the Emancipation of the Niger Delta threatened to bomb mosques and assassinate Muslim clerics, a week after saying it killed 15 security personnel in the southern oil-producing Bayelsa state.

The Angolan crude loading program for June is expected to be released tomorrow while that of Nigeria is due later this week, according to four people with knowledge of the export plan who asked not to be identified because the information is confidential.

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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