Glencore Buys Forties Crude; Buzzard Shut on Equipment Failure

Glencore Xstrata Plc bought North Sea Forties crude at higher price than yesterday. The company also sold Russian Urals blend at a smaller discount than the last trade in the Mediterranean.

Nexen Inc. halted its Buzzard oil field after an equipment failure, Karen Fordyce, a spokeswoman for the company in Aberdeen, Scotland, said in an e-mailed statement.

Daily exports of Brent, Forties, Oseberg and Ekofisk crudes will rebound 18 percent in July from an eight-month low in June, loading programs obtained by Bloomberg News showed.

North Sea

Glencore bought Forties lot F0621 for June 28 to June 30 from BP Plc (BP/) at parity to Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares with yesterday’s trade at a discount of 15 cents a barrel.

Glencore didn’t manage to buy a second cargo for June 20 to June 26 at 10 cents a barrel less than Dated Brent, while BP was unable to sell Forties for June 24 to June 26 at a premium of 15 cents, the survey showed.

BP withdrew its offer for Ekofisk cargo C11386 for July 1 to July 3 at $1 a barrel more than Dated Brent, the survey showed. This shipment was deferred by three days, according to a revised shipping schedule. Shipment C11385 was also delayed by three days to load on July 3, the plan 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 10 cents to a discount of 5 cents a barrel to Dated Brent, according to data compiled by Bloomberg.

Brent for July settlement traded at $103.65 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $103.93 in the previous session. The August contract was at $103.40 at the same time today, a discount of 25 cents to July.

The equipment failure on Buzzard has “resulted in a temporary production outage, repairs are underway,” Fordyce said. “Production levels are expected to return to normal levels over the weekend.”

The share of crude produced from Buzzard fell to 40 percent in the week ending June 2, compared with 42 percent a week earlier, BP said on its website.

Shipments of Brent, Forties, Oseberg and Ekofisk will average 851,613 barrels a day in July versus 720,000 barrels in June, which was the least since October, according to the plans.

Ekofisk loadings are set to jump to 12 cargoes from one this month after the completion of planned maintenance.

Shipments of Forties in July are planned at 20 cargoes of 600,000 barrels each, one less than this month, a program showed.

Crude shipments from Dansk Undergrunds Consortium will be five cargoes in July, two more than this month, while Alvheim exports will be unchanged at four lots of 780,000 barrels, according to plans.

Aasgard exports will be seven cargoes, one more than this month, while Grane shipments will increase by one lot to five cargoes of 600,000 barrels, schedules showed.

Mediterranean/Urals

Glencore sold 80,000 metric tons of Urals for June 27 to July 1 loading to Eni SpA (ENI) at 35 cents a barrel less than Dated Brent on a delivered basis to Augusta, Italy, the survey showed. That compares with a discount of 45 cents for the last trade on May 30.

Glencore failed to sell a second Urals cargo for June 17 to June 21 in the same region at a discount of 60 cents a barrel, according to the survey.

Urals in the Mediterranean rose by 5 cents to a discount of 38 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was 12 cents a barrel to the benchmark, versus a 10-cent discount yesterday.

West Africa

Benchmark Nigerian Qua Iboe blend was unchanged at $2.18 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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