Shell Sells Ekofisk Crude; Urals Blend Advances to 10-Month High

Royal Dutch Shell Plc (RDSA) sold North Sea Ekofisk crude, the second cargo to trade this year, at a bigger premium than the previous trade. No bids or offers were made for Russian Urals after the blend jumped to a 10-month high in northwest Europe.

Statoil ASA (STL) resumed some production at Oseberg fields, Ola Anders Skauby, a Stavanger, Norway-based spokesman, said in a text response to questions.

North Sea

Gunvor Group didn’t manage to buy Forties at 25 cents a barrel less than Dated Brent for loading on July 8 to July 14, 10 cents less than yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Phillips 66 (PSX) was unable to sell Forties for July 6 to July 8 at 35 cents less than the cash cost of North Sea crudes for August, the survey showed.

Shell sold Ekofisk cargo C11388 for July 8 to July 10 to Eni SpA (ENI) at 90 cents a barrel more than Dated Brent, according to the survey. This compares with a trade on June 10 at a premium of 70 cents.

Vitol Group failed to sell Ekofisk for July 11 to July 13 at 90 cents more than Dated Brent, the survey showed.

No bids or offers were made for 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 9 cents more than Dated Brent, compared with a discount of 6 cents yesterday, according to data compiled by Bloomberg. That’s the highest since May 20.

Brent for August settlement traded at $105.68 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $105.99 in the previous session. The September contract was at $105.40 at the same time today, a discount of 28 cents to August.

Mediterranean/Urals

Urals in the Mediterranean fell by 6 cents to a discount of 10 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the grade was at parity to Dated Brent, the highest since Aug. 16, compared with a discount of 23 cents yesterday.

OAO Surgutneftegas sold 100,000 metric tons of Urals for July 2 to July 3 loading from Ust-Luga on the Baltic Sea to Glencore Xstrata Plc via a tender, according to two people with knowledge of the matter who asked not to be identified because the information is confidential.

West Africa

Benchmark Nigerian Qua Iboe fell 2 cents to $2.28 a barrel more than Dated Brent, data compiled by Bloomberg showed.

Nigerian National Petroleum Corp. issued a term tender for all crude grades loading from August to July 2014, said two people who participate in the market, asking not to be identified as the information is confidential. The tender closes today, they said.

At least 15 companies won the term contract last year, they said.

Mangalore Refinery & Petrochemicals Ltd. (MRPL) is seeking to buy low-sulfur crude for Aug. 1 to Aug. 15 loading, according to a notice e-mailed to potential sellers.

The cargo, of either 1 million barrels or 600,000 barrels, is to be discharged at New Mangalore port on India’s west coast, the notice showed. Offers close at 9:30 a.m. local time on June 25 and must be valid until 8 p.m. on June 27.

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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