Shell Seeks Forties Crude; Statoil Shuts Oseberg After Gas Alarm

Royal Dutch Shell Plc (RDSA) failed to buy North Sea Forties crude at a higher differential than a previous bid. Eni SpA (ENI) sought to purchase a Russian Urals blend in the Mediterranean for the fourth day. The company lowered its bid from a four-month high in the previous session.

Oil and natural gas output from the Oseberg Field Center was halted earlier today after a gas alarm, according to the operator Statoil ASA. (STL)

North Sea

Shell didn’t manage to buy Forties at 5 cents a barrel more than Dated Brent for loading on either July 1 to July 3 or July 4 to July 6, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That compares with a discount of 30 cents for a bid on June 14.

Gunvor Group was unable to buy the grade for July 8 to July 14 at 15 cents less than Dated Brent, 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 6 cents less than Dated Brent, compared with a discount of 10 cents on June 14, according to data compiled by Bloomberg.

Brent for August settlement traded at $105.99 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $106.04 in the previous session. The September contract was at $105.63 at the same time today, a discount of 36 cents to August.

Oseberg stopped pumping at 7:07 a.m. local time today, Ola Anders Skauby, a Statoil spokesman, said by phone from Stavanger, Norway. “We don’t know when it will restart because we are looking for the cause of the gas alarm going off.”

Nine Oseberg blend cargoes of 600,000 barrels each are scheduled to load this month, two more than in May, according to a revised loading program obtained by Bloomberg News. This is equivalent to a daily rate of 180,000 barrels.

Mediterranean/Urals

Eni failed to buy 80,000 metric tons of Urals for June 30 to July 4 at 30 cents a barrel less than Dated Brent on a delivered basis to Augusta in Italy, compared with its bid at a discount of 5 cents on June 14, according to the survey.

Total SA sought to buy 100,000 tons of the blend for June 30 to July 4 loading at parity to Dated Brent on a delivered basis to Rotterdam, the survey showed.

Urals in the Mediterranean rose by 1 cent to a discount of 4 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was unchanged at 23 cents to the benchmark.

Russia will export seven cargoes of 100,000 tons each of Urals from Primorsk in the first five days of July, according to a preliminary loading plan obtained by Bloomberg. Ust-Luga will load three lots from June 30 to July 5, the program showed.

Urals exports from Novorossiysk on the Black Sea will be two 140,000-ton lots and two 80,000-ton cargoes from July 1 to July 5, according to the schedule. One shipment of 80,000 tons of Siberian Light will also be shipped from this port.

OAO Surgutneftegas issued a tender offering 100,000 tons of Urals for loading on July 2 to July 3 from Ust-Luga, according to three people with knowledge of the matter who asked not to be identified because the information is confidential. The tender closes tomorrow.

West Africa

Benchmark Nigerian Qua Iboe was at $2.30 a barrel more than Dated Brent, unchanged from the previous session, data compiled by Bloomberg showed.

Bharat Petroleum issued a tender to buy crude for loading on Aug. 1 to Aug. 15, according to a document obtained by Bloomberg News. The tender closes June 20, with offers valid until the following day.

Hindustan Petroleum also issued a tender, seeking West African, North Sea Brent and Libyan grades also for loading in August, another document showed. This tender closes on June 19 and offers are valid until June 20.

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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