Total, Glencore Seeks Forties Crude; Buzzard Production Resumes

Total SA (FP) and Glencore Xstrata Plc failed to buy North Sea Forties crude at lower differentials than yesterday. No bids or offers were made for Russian Urals blend in Europe for a second day.

The Buzzard oilfield in the North Sea resumed production overnight, Karen Fordyce, a spokeswoman for Nexen Inc., said today in an e-mailed statement.

North Sea

Total failed to buy Forties for June 18 to June 24 at 5 cents a barrel less than Dated Brent, while Glencore was unable to buy the grade for June 20 to June 26 at a discount of 10 cents, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares with yesterday’s trade at parity to the benchmark.

Trafigura Beheer BV didn’t manage to sell cargo F0614 for June 18 to June 20 at 5 cents more than Dated Brent, while BP Plc sought to sell shipment F0618 for June 24 to June 26 at a premium of 15 cents without success, according to the survey.

Eni SpA withdrew its bid for Forties for June 23 to June 25 at a discount of 25 cents, the survey showed.

Production at the 200,000 barrel-a-day Buzzard field, the largest contributor to Forties, is expected to “return to normal levels by mid-week,” Fordyce said. The facility was shut last weekend because of equipment failure.

Statoil ASA failed to sell Oseberg lot 20130605 for June 21 to June 23 or consignment 20130606 for June 26 to June 28 at $1.30 a barrel more than Dated Brent, according to the survey. The second cargo was advanced by one day, said four people with knowledge of the matter, who asked not to be identified as the information is confidential.

BP failed to sell Ekofisk cargo C11386 for June 28 to June 30 at $1.05 a barrel more than Dated Brent, the survey showed.

Trafigura didn’t manage to sell Ekofisk shipment C11387 for June 24 to June 26 at a premium of $1.10 to Dated Brent, according to the survey. This cargo was deferred for a second time by 10 days, the people said.

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 17 cents to a premium of 5 cents a barrel to Dated Brent, according to data compiled by Bloomberg. This was the highest since May 20.

Brent for July settlement traded at $102.27 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $101.93 in the previous session. The August contract was at $101.98 at the same time today, a discount of 29 cents to July.

North Sea loading programs will be issued later this week, with Forties due June 6, according to people with knowledge of the matter.

Mediterranean/Urals

Urals in the Mediterranean fell by 2 cents to a discount of 41 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was 3 cents a barrel to the benchmark, versus a 5-cent discount yesterday. That’s the smallest discount since Aug. 16.

PT Pertamina bought 3.75 million barrels of crude for August delivery to its Balikpapan and Cilacap refineries, said a company official who asked not to be identified because the transactions are confidential.

The company bought two cargoes of 950,000 barrels each of Azeri Light, 600,000 barrels of Brunei’s Champion, 650,000 barrels of Libya’s Sharara, and 600,000 barrels of Algeria’s Saharan Blend, the official said.

West Africa

Benchmark Nigerian Qua Iboe blend was unchanged at $2.20 a barrel more than Dated Brent, data compiled by Bloomberg showed.

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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