Petraco Bids Urals at Record High; Buzzard Output Returns

Petraco SpA failed to buy Russian Urals in the Mediterranean at the highest differential in more than 20 years. Royal Dutch Shell Plc (RDSA) sold North Sea Forties crude at Monday’s five-month high.

Shipments of Azeri Light blend from Georgia’s Black Sea port of Supsa for August will total four cargoes of 600,000 barrels each, one fewer than this month, according to a preliminary loading schedule obtained by Bloomberg News.

North Sea

Shell sold Forties F0719 for loading July 29 to July 31 at a premium of 50 cents a barrel to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That is the same as the price for a cargo it sold July 8, which was the highest since Feb. 8.

Shell withdrew an offer for a Forties loading July 21 to July 23 at a premium of 35 cents to Dated Brent.

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

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 fell 4 cents to a premium of 47 cents to Dated Brent, after having reached a five-month high yesterday, according to data compiled by Bloomberg.

Brent for August settlement traded at $108.21 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $107.58 in the previous session. The September contract was at $107.41 at the same time today, a discount of 80 cents to August.

The U.K.’s largest oil field, Buzzard, is returning to full production after falling below 100,000 barrels a day yesterday, according to three people with knowledge of the matter who asked not to be identified because the information is confidential.

The 200,000 barrel-a-day field is producing about 160,000 barrels, one of them said earlier today. Nexen Inc., which operates the field, declined to comment. Buzzard is the largest contributor to the Forties blend, which typically sets the price of the Dated Brent benchmark.

Mediterranean/Urals

Eni SpA (ENI) failed to sell 100,000 metric tons of Urals for loading July 31 to Aug. 4 at 70 cents a barrel more than Dated Brent.

Petraco sought to buy 80,000 tons of Urals at a premium of 95 cents to Dated Brent for loading July 27 to July 31, but failed to find a seller.

Urals in the Mediterranean rose by 2 cents to a premium of 77 cents a barrel to Dated Brent. That’s the highest since at least July 1991, when Bloomberg started tracking the data. In northwest Europe, the grade was at 47 cents a barrel more than Dated Brent, compared with 45 cents yesterday.

Daily Azeri Light loadings from Supsa will be equal to 77,419 barrels a day in August, compared to 58,065 barrels a day this month. BP Plc (BP/) operates the Baku-Supsa pipeline, which carries the grade from the Caspian Sea to the Black Sea.

Iraq is restoring crude flows through the Kirkuk-Ceyhan pipeline to normal levels of 325,000-350,000 barrels-a-day, said the state-run North Oil Co. in a statement. Flows through the pipeline have been intermittent since June 22.

West Africa

Nigerian benchmark Qua Iboe was steady at $2.50 a barrel more than Dated Brent, data compiled by Bloomberg showed.

Indian state-run PTT Pcl (PTT) is seeking to buy as much as 1 million barrels of crude on behalf of IRPC Pcl (IRPC), a Thai refiner and petrochemical maker, according to two traders with knowledge of the tender. The crude is for delivery on Sept. 1 to Sept. 5 at Rayong, where IRPC operates a 215,000 barrel-a-day refinery.

Another Indian refiner, Bharat Petroleum Corp., is seeking to buy crude for loading in early August, said two traders who asked not to be identified because the information is confidential. Potential sellers must offer grades today, with price offers due tomorrow, they said. All offers must stay valid until July 12, the traders said.

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.