Total, Shell Buy Forties at Five-Week High; Usan Cargoes Delayed

Total SA (FP) and Royal Dutch Shell Plc (RDSA) bought three cargoes of North Sea Forties at the highest price in five weeks. No bids or offers were made for Russian Urals crude in Europe for a second day.

All three cargoes of Nigerian Usan crude for July loading will be deferred to August, according to two people with knowledge of the loading program.

North Sea

Three cargoes of Forties were sold at a premium of 5 cents a barrel more than Dated Brent, the highest since May 16 and compared with a discount of 15 cents for the last trade on June 19, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Shell sold Forties cargo F0709 for July 12 to July 14 and lot F0712 for July 17 to July 19 to Total, while Eni SpA (ENI) sold shipment F0707 for July 7 to July 9 to Shell, according to the survey. Eni failed to find a buyer for Forties for loading on July 11 to July 13 at the same price, the survey showed.

Mercuria Energy Trading SA didn’t manage to buy Forties for July 7 to July 10 at 5 cents a barrel more than Dated Brent, while Trafigura Beheer BV was unable to buy the grade for July 16 to July 18 at 10 cents a barrel less than the benchmark, according to the survey.

For Ekofisk, Shell sold shipment C11389 for July 15 to July 17 to Total at 75 cents a barrel more than Dated Brent, compared with a premium of 60 cents for the last transaction on June 18, the survey showed.

Eni failed to sell Ekofisk for July 8 to July 10 at 65 cents a barrel more than Dated Brent, according to the survey.

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 21 cents more than Dated Brent, compared with a premium of 12 cents yesterday, according to data compiled by Bloomberg. That’s the highest since May 20.

Brent for August settlement traded at $101.75 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $100 in the previous session. The September contract was at $101.37 at the same time today, a discount of 38 cents to August.

Brent cargo B0701 will load on July 10-12, three days later than originally scheduled, and lot B0702 will load July 13-15, deferred by one day, according to three people with knowledge of the loading program who asked not to be identified because the information is confidential.

Platts will cut the sulfur de-escalator for Forties to 20 cents a barrel from July 1, compared with 25 cents for May and June, the company said in a statement on its website.

Mediterranean/Urals

Urals in the Mediterranean rose by 6 cents to a discount of 25 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the grade was at 19 cents a barrel more than Dated Brent, compared with a premium of 22 cents on June 21. That’s the highest since Aug. 16.

West Africa

Nigerian Benchmark Qua Iboe fell 2 cents to $2.22 a barrel more than Dated Brent, data compiled by Bloomberg showed.

Nigeria will export two cargoes of Antan crude in August, including one deferred from July, according to a shipping plan. Antan’s July loadings will be revised to one shipment from two.

Equatorial Guinea plans to increase exports of its Zafiro crude in August to four cargoes of 1 million barrels each, one more than in July, according to a loading program obtained by Bloomberg News.

The nation will maintain its Ceiba exports at two shipments of 1 million barrels each, and Aseng loadings stable at two lots of 650,000 barrels each, a separate plan showed.

Ghana will cut Jubilee exports for August to three cargoes of 950,000 barrels each from four in July, according to a shipping schedule.

The Republic of Congo will ship six lots of Djeno crude in August, one more than July, while keeping its N’Kossa exports unchanged at two consignments, another program showed.

Shell’s Nigerian unit said it will conduct an investigation today into the cause of a June 19 explosion and fire on its Trans Niger Pipeline. Shell has shut the link, halting 150,000 barrels a day of crude that is normally piped to the Bonny export terminal.

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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