BP Sells Forties at Higher Price; Iraq to Boost Basrah Crude

BP Plc (BP/) sold North Sea Forties crude at a higher price than the previous trade. Gunvor Group Ltd. failed to buy Urals blend at a smaller discount to Dated Brent.

Iraq will export 44 cargoes of Basrah Light crude from the Persian Gulf in June, one more than this month, a loading program obtained by Bloomberg News showed.

North Sea

BP sold Forties lot F0609 for loading on June 11 to June 13 to Total SA at 10 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 on May 23 at a discount of 30 cents.

Trafigura Beheer BV failed to sell Forties for June 15 to June 17 at plus 10 cents, according to the survey.

Trafigura was also unable to sell Oseberg for June 13 to June 15 at 85 cents a barrel more than Dated Brent, while Statoil ASA didn’t manage to buy the grade for June 16 to June 18 at the same premium, the survey showed.

Total sought to buy Oseberg at a premium of 80 cents for June 21 to June 23 without success, 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 rose by 6 cents to a discount of 21 cents a barrel to Dated Brent, according to data compiled by Bloomberg.

Brent for July settlement traded at $104.29 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $101.87 on May 24. The August contract was at $104.05 at the same time today, a discount of 24 cents to July.

Buzzard share in Forties output was at 42 percent in the week ending May 26, BP said today on its website. The proportion for the previous week was yet to be confirmed, according to the company.

Mediterranean/Urals

Gunvor failed to buy 100,000 metric tons of Urals for June 18 to June 22 loading at 20 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, up from a discount of 40 cents for the last trade on May 22, according to the survey.

Vitol Group didn’t manage to sell 140,000 tons of the blend for June 10 to June 14 loading at 15 cents a barrel less than Dated Brent, the survey showed.

Urals in the Mediterranean fell by 6 cents to a discount of 17 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was at 25 cents a barrel to the benchmark, compared with 30 cents yesterday.

Socar Trading SA failed to sell 600,000 barrels of Azeri Light for June 7 to June 11 at $2 a barrel more than Dated Brent, the survey showed.

About 71.7 million barrels, or 2.39 million barrels a day, of crude will be exported from the Basrah Oil Terminal, according to the plan. That compares with 2.15 million barrels a day this month.

The schedule comprises 29 lots of 2 million barrels each, 8 shipments of 1 million barrels, two of 715,000 barrels and one each of 1.8 million, 1.1 million, 889,000 and 500,000 barrels. The volume of one consignment owned by Petrochina Iraq was not shown in the plan.

Surgutneftegas sold three cargoes of Urals for loading from Baltic Sea ports via a tender, according to four people with knowledge of matter who asked not to be identified because information is confidential.

One cargo for June 11 to June 12 from Ust-Luga and another for June 15 to June 16 from Primorsk were awarded to OAO Lukoil, while Talmay Trading got a consignment for June 16 to June 17 from Ust-Luga, they said. All shipments are for 100,000 tons each.

Libya’s oil production is at 1.5 million barrels a day, Oil Minister Abdulbari Al-Arusi said in an interview in the capital Tripoli today.

The Al-Ghani field, which is operated by Harouge Oil Operations, will resume production today, he said, without giving further details.

West Africa

Benchmark Nigerian Qua Iboe blend fell by 3 cents to $2.30 a barrel more than Dated Brent, data compiled by Bloomberg showed. That’s the least since Feb. 27.

Sonangol Pesquisa & Producao SA, an exploration unit of Angolan state oil producer Sonangol EP, plans to buy a stake in an offshore block from Total as the French company offloads assets to bolster its balance sheet.

Total will sell a 15 percent holding in the 15-06 zone operated by Eni SpA, according to a Feb. 28 decree allowing the sale and seen by Bloomberg this week. While the block isn’t yet producing, development began early last year.

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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