Glencore Fails to Buy Forties Crude; BTC Azeri Exports to Drop

Glencore Xstrata Plc failed to buy North Sea Forties crude at a lower price than yesterday. The company sold Russian Urals blend at a bigger discount than the last trade in northwest Europe, the first transaction in more than two weeks.

The North Sea Buzzard field restarted this morning after an equipment glitch yesterday, said three people with knowledge of the matter who asked not to be identified because the information is confidential.

Daily exports of Azeri Light crude from a port in Turkey will decline by 1.2 percent in July from this month, a loading program obtained by Bloomberg News showed.

North Sea

Glencore didn’t manage to buy Forties for June 24 to June 29 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 its purchase yesterday at parity to the benchmark.

No bids or offers were made for Ekofisk and Oseberg today.

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 was unchanged at 5 cents a barrel less than Dated Brent, according to data compiled by Bloomberg.

Brent for July settlement traded at $104.36 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $103.65 in the previous session. The August contract was at $104.14 at the same time today, a discount of 22 cents to July.

Buzzard was pumping at 120,000 to 130,000 barrels a day at about 6 a.m. this morning, one of the people said. The field was halted yesterday after an equipment failure. An earlier fault caused output to be disrupted during the weekend of June 1-2.

ConocoPhillips (COP) shut its Ekofisk fields in early June for about one month of planned maintenance, Stig Kvendseth, a Stavanger, Norway-based spokesman for the company said today in an e-mailed statement.

“The Greater Ekofisk Area has scheduled shutdowns every three years for maintenance,” he said. The Eldfisk field, which flows into the Ekofisk stream, was halted late May for about 70 days, according to the company.

One shipment of 650,000 barrels of Flotta crude for June 26-28 loading will be exported, according to a revised loading program obtained by Bloomberg News. The original shipping schedule for June showed no exports.

Mediterranean/Urals

Glencore sold 100,000 metric tons of Urals for June 26 to June 30 loading to Total SA at 50 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, the survey showed. That compares with a discount of 40 cents for the last trade on May 22.

Glencore failed to sell 80,000 tons of Urals for June 17 to June 21 loading at a discount of 85 cents a barrel to Dated Brent on a delivered basis to Augusta, Italy, 25 cents less than its offer yesterday, according to the survey.

Urals in the Mediterranean fell by 12 cents to a discount of 50 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was 15 cents a barrel to the benchmark, versus a 12-cent discount yesterday.

Shipments of Azeri Light crude from Ceyhan will total 21.6 million barrels, or 696,774 barrels a day, in July, compared with 705,000 barrels a day in June, according to a shipping schedule.

West Africa

Benchmark Nigerian Qua Iboe blend rose 3 cents to a premium of $2.21 a barrel to 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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