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Total Offers to Sell Forties Crude; CPC July Exports to Decline

Total SA (FP) failed to sell North Sea Forties crude at a higher price than its offer yesterday. Vitol Group sought to sell Russian Urals blend in the Mediterranean at a smaller discount than the last transaction without success.

The Caspian Pipeline Consortium will reduce daily crude exports from the Black Sea in July by 1.2 percent from June, a provisional loading program obtained by Bloomberg News showed.

North Sea

Total offered Forties for June 23 to June 25 loading at 35 cents a barrel less than Dated Brent, 10 cents higher than its offer yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

BP Plc (BP/) didn’t manage to sell Forties for June 27 to June 29 at 20 cents less than Dated Brent, while Eni SpA (ENI) was unable to sell the grade for July 4 to July 6 at a premium of 20 cents, the survey showed.

No bids or offers were made for Ekofisk and Oseberg.

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 at 46 cents less than Dated Brent, compared with a discount of 28 cents yesterday, according to data compiled by Bloomberg.

Brent for July settlement traded at $103.86 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $102.28 in the previous session. The August contract was at $103.94 at the same time today, a premium of 8 cents to July.

Forties cargo F0618 was deferred by one day to export on June 25 to June 27, said two people with knowledge of the loading program.

Shipments of Foinaven crude will remain at one cargo of 600,000 barrels in July, unchanged from June, according to a loading program.

Planned oil field maintenance will reduce North Sea crude supply by an average of 330,000 barrels a day from May to September, potentially influencing oil prices, according to the International Energy Agency.

“Seasonal maintenance, compounded with unplanned maintenance in the same systems, can reduce the physical supply of the BFOE price benchmark, causing upward price pressures,” the Paris-based energy adviser said today in its monthly oil market report.

South Korean refiners are set to cut imports of North Sea crude after a tax change that will reduce the benefit they get from buying oil from the region, according to the report.

Korean refiners receive 90 percent government reimbursement for the difference in freight charges on crude imports from the Americas, Africa and Europe compared with the Middle East in a bid to diversify nation’s supply sources. As of July 1, refiners buying duty-free crude from the EU will no longer be able to claim this freight rebate, it said.

“The economic benefits that fueled brisk North Sea-Korea trade over the past few years will be reduced,” the IEA said.

Mediterranean/Urals

Vitol failed to sell 80,000 metric tons of Urals for June 22 to June 26 at 10 cents a barrel less than Dated Brent on a delivered basis to Augusta in Italy, the survey showed. That compares with a cargo it sold yesterday at minus 30 cents.

Eni didn’t manage to buy the same amount of Urals in this region for June 26 to June 30 at 35 cents a barrel less than Dated Brent, according to the survey.

Urals in the Mediterranean rose by 31 cents to a discount of 35 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was 33 cents to the benchmark, versus minus 50 cents in the previous session.

CPC will ship 2.757 million tons in July, compared with 2.699 million tons in June, the schedule showed. That’s equal to 691,029 barrels a day, down from 699,041 barrels this month.

The program comprises seven cargoes of 134,000 to 135,500 tons each and 21 consignments of 85,000 to 93,500 tons.

An unassigned position for 80,000 tons of Urals for June 14 to June 15 loading from the Black Sea port of Novorossiysk was filled by OAO Lukoil, said two traders who participate in the market, asking not to be identified as the information is confidential.

OAO Surgutneftegas didn’t manage to fill the 100,000-ton slot at Primorsk on the Baltic Sea for June 20 to June 21, they said.

Libya will resume exports from Zueitina after it restarted supplies of crude and natural gas to the facility, the official Lana news agency reported today, citing an unidentified engineer at the port. Strikes and technical issues have disrupted exports from Zueitina since the start of this year.

West Africa

Benchmark Nigerian Qua Iboe blend rose by 4 cents to a premium of $2.26 a barrel to Dated Brent, data compiled by Bloomberg showed.

Gabon plans to export three cargoes of Rabi Blend and two shipments of Rabi Light in July, unchanged from June, according to a loading program obtained by Bloomberg News. All consignments are of 650,o00 barrels.

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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