Vitol Buys Third June Forties Cargo; Kirkuk Oil Exports to Rise

Vitol Group bought its third North Sea Forties crude cargo for loading in June at a lower price than the previous trade. No bids or offers were made for Russian Urals blend.

Iraq plans to increase exports of its Kirkuk crude in June from the Turkish port of Ceyhan to 18 cargoes, three more than this month, a loading program obtained by Bloomberg News showed.

North Sea

Vitol bought Forties cargo F0606 for loading on June 7 to June 9 from BP Plc (BP/) at 30 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 discount of 20 cents it got for a purchase on May 21.

Last week Vitol booked a very large crude carrier Maersk Sandra to load crude on June 4 from Hound Point in the U.K., reports from shipbrokers, including ICAP Shipping International Ltd., showed on May 20. Hound Point is the loading terminal for Forties. A VLCC typically holds 2 million barrels of crude.

BP withdrew its offer for Oseberg grade for June 7 to June 9 loading at a premium of 85 cents a barrel to Dated Brent, the survey showed.

Royal Dutch Shell Plc (RDSA) withdrew two offers. One was for Forties for June 3 to June 5 at 25 cents less than Dated Brent, and the other for Oseberg for the same period at a premium of 80 cents, according to the survey. The Oseberg cargo was originally planned to be exported from May 29 to May 31, said two people with knowledge of the loading program.

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 11 cents to a discount of 37 cents a barrel to Dated Brent, the lowest since May 1, according to data compiled by Bloomberg.

Brent for July settlement traded at $101.26 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $103.30 yesterday. The August contract was at $101.09 at the same time today, a discount of 17 cents to July.

Mediterranean/Urals

Socar Trading SA failed to sell 600,000 barrels of Azeri Light for June 3 to June 7 at $2.35 a barrel more than Dated Brent, according to the survey. That compares with a premium of $2.60 for a cargo it sold yesterday.

Urals in the Mediterranean fell by 22 cents to a discount of 15 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was at 34 cents a barrel to the benchmark, compared with 20 cents yesterday.

Shipments of Kirkuk will total 9.07 million barrels, or 302,333 barrels a day, the plan showed. That compares with 248,710 barrels planned for May.

OAO Surgutneftegas sold three cargoes of Urals for loading from two Baltic ports, according to three people with knowledge of the matter who asked not to be identified because information is confidential.

The producer sold one cargo for June 6 to June 7 loading from Primorsk to Total SA and another for June 7 to June 8 from the same port to Neste Oil Oyj (NES1V), they said.

The third shipment for June 8 to June 9 from Ust-Luga was sold to Glencore Xstrata Plc. All consignments are for 100,000 metric tons each.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 13 cents to $2.70 a barrel more than Dated Brent, data compiled by Bloomberg showed. That’s the least since Feb. 28.

Ghana plans to increase exports of its Jubilee crude in July to four cargoes of 950,000 barrels each, one more than June, according to a loading program obtained by Bloomberg News.

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

Bloomberg reserves the right to edit or 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.