BP Buys Forties at 10-Day Low; Glencore Sells Russia Urals Crude

BP Plc bought North Sea Forties crude at the lowest price in 10 days. Glencore Xstrata Plc sold Russian Urals blend at a bigger discount to Dated Brent.

One Forties cargo for shipment in May was deferred by three days, while another for June was advanced by one day, according to three people with knowledge of the matter.

North Sea

BP purchased Forties lot F0520 from Vitol Group for loading May 25 to May 27 at 35 cents a barrel less than Dated Brent, the lowest since April 30, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That compares with a premium of 5 cents for a trade yesterday, according to data compiled by Bloomberg.

Glencore failed to buy Forties for May 28 to June 5 at 8 cents a barrel less than Dated Brent, the survey showed.

Eni SpA was unable to sell Brent cargo B0504 for May 23 to May 25 at 10 cents a barrel less than Dated Brent, according to the survey. This cargo was deferred by five days, said three people with knowledge of the market.

Glencore also sought to buy Oseberg for June 1 to June 4 at a premium of 70 cents without success, while Mercuria Energy Trading SA didn’t manage to buy Oseberg or Ekofisk for June 2 to June 4 or June 1 to June 7 at 50 cents a barrel more than Dated Brent, 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 fell by 18 cents to a discount of 13 cents a barrel to Dated Brent.

Brent for June settlement traded at $101.99 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $104.01 yesterday. The July contract was at $101.80 at the same time today, a discount of 19 cents to June.

Forties consignment F0521 will now load on May 30 to June 1, while cargo F0602 will be exported on June 1 to June 3, said the people, asking not to be identified because the information is confidential.

Exports of Troll crude in June will be 14 cargoes, two more than May, a loading program obtained by Bloomberg News showed.

The June schedule comprises 12 cargoes of 600,000 barrels each and two lots of 300,000 barrels, the plan showed. It will total 7.8 million barrels, or 260,000 barrels a day, compared with 232,258 barrels a day in May, according to the program.

Shipments of Grane for June will be four cargoes of 600,000 barrels each, one less than in May, a loading program showed.

Mediterranean/Urals

Glencore sold 100,000 metric tons of Urals crude for May 20 to May 24 loading to Eni at 90 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, the Platts survey showed. That compares with a discount of 70 cents for a trade yesterday, the highest since Dec. 20, according to data compiled by Bloomberg.

Urals in the Mediterranean fell by 5 cents to a discount of 4 cents a barrel to Dated Brent after rising to a premium for the first time since Aug. 20 yesterday, data compiled by Bloomberg showed. In northwest Europe, the discount was at 68 cents a barrel compared with 52 cents yesterday.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 5 cents to $3.40 a barrel more than Dated Brent, data compiled by Bloomberg show.

Indian Oil Corp. bought 2 million barrels of July Angolan Girassol and Nigerian Forcados crudes from Total SA, according to two people with knowledge of the matter who asked not to be identified because the information is confidential.

Three Angolan crude cargoes for loading in June, out of 51 lots scheduled for export in that month, haven’t been sold, according to four traders who participate in the market.

That’s about normal for this time of the month, the people said. The unsold lots comprise one each of Mondo, Nemba and Pazflor grades, they said. That compares with one May cargo that was available as of April 12, four traders said at the time.

Nigeria has about 20 cargoes of loading in June available for sale, out of 66 lots scheduled for export next month, according to four traders who participate in the market.

That’s more than normal for this stage of the month, said the people, who asked not to be identified because the information is confidential. The grades remaining include Abo, Bonny Light, Brass River, EA Blend, Forcados, Okwori, Pennington, Yoho and at least one of benchmark Qua Iboe crude, they said. That compares with nine March cargoes still unsold as of Feb. 7, four traders said.

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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