Vitol Buys Forties at 10-Day Low; Libya Raises Es Sider Crude

Vitol Group bought North Sea Forties crude at the lowest differential in 10 days. Total SA failed to purchase Russian Urals blend at a smaller discount than the last transaction.

Libya’s state-run National Oil Corp. raised its official selling price of benchmark Es Sider crude for June to a premium of 15 cents a barrel to Dated Brent, 5 cents more than this month, according to a price list obtained by Bloomberg News.

North Sea

Vitol bought Forties F0605 for June 5 to June 7 loading from Royal Dutch Shell Plc (RDSA) at parity to Dated Brent, the lowest spread since May 10, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. This compares with a premium of 20 cents for the previous trade on May 16.

BP Plc (BP/) failed to sell Forties for June 7 to June 9 at 35 cents a barrel more than Dated Brent, and was unable to sell a cargo of Oseberg for the same date at a premium of $1.50 to the benchmark, the survey showed.

Shell didn’t manage to sell Brent lot B0505 for May 29 to May 31 at a discount of 25 cents a barrel to Dated Brent, the survey showed. This cargo was deferred by seven days, according to three people with knowledge of loading programs.

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 rose by 2 cents to a premium of 22 cents a barrel to Dated Brent, according to data compiled by Bloomberg.

Brent for July settlement traded at $104.93 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $104.05 on May 17. The August contract was at $104.81 at the same time today, a discount of 12 cents to July.

Ekofisk lot C11387 was deferred by 12 days to load on June 14 to June 16, said the three people who asked not to be identified as the information is confidential.

Vitol booked a third tanker to haul Forties to South Korea, boosting its shipments this year to at least 6 million barrels, according to shipbrokers’ reports.

Vitol chartered the Maersk Sandra supertanker to load 270,000 metric tons of the grade on June 4 from Hound Point in the U.K., according to reports from shipbrokers, including ICAP Shipping International Ltd. Hound Point is the loading terminal for Forties.

Mediterranean/Urals

Total failed to buy 100,000 tons of Urals for May 30 to June 3 loading at 15 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, compared with its last bid at a discount of 50 cents on May 17, the survey showed.

Urals in the Mediterranean rose by 4 cents to a discount of 2 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was at 44 cents a barrel to the benchmark, compared with 71 cents on May 17.

OAO Surgutneftegas sold two cargoes of Urals for loading from two Baltic ports, said three traders with knowledge of the matter.

The company sold one lot for June 3 to June 4 from Primorsk to BP Plc, and one for June 4 to June 5 from Ust-Luga to Glencore Xstrata Plc, the people said, asking not to be identified because the information is confidential. Each consignment is 100,000 tons.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 12 cents to $2.90 a barrel more than Dated Brent, data compiled by Bloomberg showed.

China International United Petroleum & Chemical Co., known as Unipec, and Morgan Stanley sold crude cargoes for July to Indian Oil Corp., the country’s biggest refiner, said three traders who asked not to be identified because the information is confidential.

Indian Oil bought about 1 million barrels each of Nigerian Akpo and Angolan Hungo blend from Unipec and 1 million barrels of Libyan Mellitah grade from Morgan Stanley, the 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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