Shell Offers Russian Urals; Indian Oil Buys West African Crude

Royal Dutch Shell Plc (RDSA) failed to sell Russian Urals in northwest Europe at a lower differential. No bids or offers were made for North Sea Forties crude.

Shell, Chevron Corp. and Total SA sold 4 million barrels of West African crude to Indian Oil Corp., the nation’s largest refiner, for loading in September, said three traders who asked not to be identified because the information is confidential.

North Sea

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.

Shell yesterday 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.

Brent for August settlement traded at $107.93 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $108.21 in the previous session. The September contract was at $107.18 at the same time today, a discount of 75 cents to August.

Mediterranean/Urals

Shell failed to sell 100,000 metric tons of Urals for loading Aug. 1 to Aug. 5 at 55 cents a barrel more than Dated Brent on a delivered basis to Rotterdam, according to the survey. This compares with an offer that was withdrawn at a premium of 70 cents yesterday.

Urals in the Mediterranean rose to a premium of 77 cents a barrel to Dated Brent yesterday, which was the highest since at least July 1991, when Bloomberg started tracking the data.

PKN Orlen SA, Poland’s largest oil company, bought 100,000 tons of Urals for July 28 to Aug. 1 delivery to Butinge oil terminal in Lithuania from Vitol Group, according to three people with knowledge of the matter who asked not to be identified because the information is confidential. The cargo was bought at a premium of about 50 to 55 cents a barrel to Dated Brent, two of them said.

West Africa

Total didn’t manage to sell Cabinda for Aug. 2 to Aug. 3 loading at $1 a barrel less than Dated Brent, the survey showed. The company started offering the cargo on June 28 at a premium of 30 cents.

Indian Oil purchased via a tender 1 million barrels each of the Angolan Girassol and Nigerian Forcados grades from Shell, three traders said. Chevron will supply the company 1 million barrels of Nigeria’s Agbami, while Total will provide the Amenam variety from the West African nation, they said.

Nigeria’s Usan oil field will pump 180,000 barrels a day by the end of this year, from current 130,000 barrels, Abiye Membere, group executive director of Nigerian National Petroleum Corp., said today in Beijing.

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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