Total Seeks Forties Crude; Shell Sells Urals at Three-Year High

Total SA (FP) failed to buy North Sea Forties at the highest price in four months. Royal Dutch Shell Plc (RDSA) sold Russian Urals crude in northwest Europe at the highest differential to Dated Brent in at least three years.

The Caspian Pipeline Consortium, operator of the only oil-export link in Russia that has shared foreign ownership, will increase daily crude exports from the Black Sea in July to the highest in more than two years, a final loading program obtained by Bloomberg News showed.

North Sea

Total failed to buy Forties for loading July 20 to July 25 at 35 cents a barrel more than Dated Brent, 10 cents higher than yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That was the highest bid since Feb. 25.

Trafigura Beheer BV didn’t manage to buy the grade at the same price for July 24 to July 29, according to the survey.

Gunvor Group was unable to buy Forties for July 26 to July 29 at 30 cents a barrel more than Dated Brent, while Phillips 66 (PSX) sought to buy at the same premium without success for July 20 to July 23, the survey showed.

Total failed to buy Ekofisk for loading July 18 to July 23 at 90 cents a barrel more than Dated Brent, 5 cents less than its bid yesterday, according to the survey.

There were no bids or offers for Brent or Oseberg crude.

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 34 cents more than Dated Brent, compared with a premium of 31 cents yesterday, according to data compiled by Bloomberg. This is the highest since Feb. 14.

Brent for August settlement traded at $105.76 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $103.66 in the previous session. The September contract was at $105.21 at the same time today, a discount of 55 cents to August.

Mediterranean/Urals

Shell sold 100,000 metric tons of Urals for July 16 to July 20 loading to Total at 40 cents a barrel more than Dated Brent on a delivered basis to Rotterdam, the survey showed.

OAO Lukoil failed to buy 80,000 tons of Urals for July 15 to July 19 at 70 cents a barrel more than Dated Brent, according to the survey. This was also the highest bid in more than three years.

Urals in the Mediterranean rose by 20 cents to a premium of 58 cents a barrel to Dated Brent, the most since Aug. 17, data compiled by Bloomberg showed. In northwest Europe, the grade rose by 7 cents to 50 cents a barrel more than Dated Brent, the highest since Aug. 14.

The Caspian Pipeline Consortium, known as CPC, will ship 2.89 million tons of CPC blend, compared with 2.699 million tons in June, according to the schedule. That’s equal to 724,490 barrels a day, the most since November 2010, compared with 699,041 barrels last month.

The program comprises seven cargoes of 134,000 to 135,500 tons each and 23 consignments of 85,000 to 93,500 tons.

The volume in the final program is higher than 2.757 million tons in the provisional plan released on June 12.

Indonesia’s Pertamina Persero PT bought 950,000 barrels of Azerbaijan’s Azeri Light crude for delivery in September to its Balikpapan refinery, said two people with knowledge of the purchase. They asked not to be identified because they aren’t authorized to speak to the media.

West Africa

Total failed to sell Angolan Cabinda crude for a second day even after lowering the offer by 40 cents to a discount of 20 cents to Dated Brent, the survey showed. The shipment is for loading on Aug. 2 to Aug. 3.

Nigerian benchmark Qua Iboe rose 3 cents to $2.23 a barrel more than Dated Brent, data compiled by Bloomberg showed.

To contact the reporters on this story: Sherry Su in London at lsu23@bloomberg.net; Laura Hurst in London at lhurst3@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

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