Total Buys Forties Crude; Nigeria to Cut June Qua Iboe Exports

Total SA bought a cargo of North Sea Forties crude at a higher price than the previous trade. There were no bids or offers for Urals grade for a third day.

Nigeria, Africa’s largest oil producer, cuts exports of its benchmark Qua Iboe grade to 10 cargoes in June, according to a loading program obtained by Bloomberg News.

North Sea

Total bought Forties lot F0514 from Royal Dutch Shell Plc (RDSA) for loading from May 17 to May 19 at 25 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 at a 30 cent discount on April 22.

The company also bid for Forties for loading May 6 to May 11 at 90 cents less than the cash cost of Brent, Forties, Oseberg and Ekofisk crudes for July without finding a seller, the survey showed.

Mercuria Energy Trading SA bid unsuccessfully for the grade at a 30 cent discount to Dated Brent for May 17 to May 21 loading, according to the survey.

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 2 cents to a discount of 17 cents a barrel to Dated Brent, according to data compiled by Bloomberg. That’s the narrowest since March 20.

Brent for June settlement traded at $101.31 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $99.90 in the previous session. The July contract was at $101.26 at the same time today, a discount of 5 cents to June.

Mediterranean/Urals

There were no bids or offers for Russian Urals for a third day, the Platts survey showed. The grade traded at a discount of 40 cents to the benchmark in the Mediterranean and minus $1.20 in northwest Europe on April 19.

The Urals discount to Dated Brent in the Mediterranean narrowed by 3 cents to 32 cents a barrel, data compiled by Bloomberg show. In northwest Europe, the discount was at $1.22 a barrel compared with $1.25 at yesterday’s close.

West Africa

Benchmark Nigerian Qua Iboe blend rose 2 cents to $3.13 a barrel more than Dated Brent, data compiled by Bloomberg show.

The Qua Iboe cargoes for June are all 950,000 barrels and compares with 11 in May, the schedule showed.

Exports of Yoho grade will drop to one consignment in June, compared with three for May, according to a separate plan.

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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