Urals Crude Premium Rises to 20-Year High; Shell Sells Forties

Royal Dutch Shell Plc (RDSA) sold North Sea Forties at a premium of 35 cents a barrel to Dated Brent, the highest trade since Jan. 22. Russian Urals crude differentials in the Mediterranean climbed to the highest in at least 20 years.

Crude shipments from Dansk Undergrunds Consortium, the producer part-owned by A.P. Moeller-Maersk A/S, will increase to seven cargoes in August, the highest level in 15 months, a loading program obtained by Bloomberg News shows.

Saudi Arabian Oil Co., the world’s largest crude exporter, boosted its August official selling price for Arab Light blend from the Egyptian port of Sidi Kerir, according to two people with knowledge of the matter.

North Sea

Shell sold Forties cargo F0714 for July 20 to July 22 to Total SA (FP) at a premium of 35 cents a barrel to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That was the first Forties trade in the window since June 27 when Eni SpA (ENI) sold cargo F0708 at parity to Dated Brent.

Gunvor Group was unable to buy Forties for July 26 to July 30 at 30 cents a barrel more than Dated Brent, the same premium it offered yesterday, the survey showed.

There were no bids or offers for the Brent, Oseberg or Ekofisk crude grades.

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 44 cents more than Dated Brent, compared with a premium of 34 cents yesterday, according to data compiled by Bloomberg.

Dansk Undergrunds Consortium exports will total 135,484 barrels a day in August, up from 60,000 barrels a day this month, the schedule shows. That’s the highest daily rate since May 2012, according to data compiled by Bloomberg. DUC is the first schedule released of the 12 main North Sea grades and the most important four; Brent, Forties, Oseberg and Ekofisk, are expected to be issued tomorrow.

Brent for August settlement traded at $105.21 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $105.76 in the previous session. The September contract was at $104.59 at the same time today, a discount of 62 cents to August.

Mediterranean/Urals

There were no bids or offers in the window, the survey showed.

Urals in the Mediterranean rose by 15 cents to a premium of 73 cents a barrel to Dated Brent, the highest level since at least July 1991, when Bloomberg started tracking the data. In northwest Europe, the grade fell by 11 cents to 39 cents a barrel more than Dated Brent, the first drop since June 27.

Saudi Aramco raised the official selling price for Arab Light by 35 cents a barrel to a discount of 55 cents a barrel to the Brent futures weighted average, or Bwave, published by the Intercontinental Exchange, said two people with knowledge of the matter.

West Africa

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

Nigerian benchmark Qua Iboe rose 7 cents to $2.30 a barrel more than Dated Brent, data compiled by Bloomberg showed.

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