Urals Crude Trades at Record High; CPC August Exports to Fall

A cargo of Russian Urals crude sold in the Mediterranean at a record premium of more than $1 a barrel to Dated Brent, according to three traders who participate in the market who asked not to be identified as the information is confidential.

The Caspian Pipeline Consortium, operator of the only oil-export link in Russia that has shared foreign ownership, will cut daily crude exports from the Black Sea in August by 9.7 percent, a preliminary loading program obtained by Bloomberg News showed. Iraq resumed flows through its export pipeline to Turkey.

North Sea

Trafigura sought Forties for loading Aug. 6 to Aug. 8 at 40 cents a barrel above Dated Brent, without finding a seller, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Mercuria failed to buy Forties for loading July 25 to July 31, despite bidding at a premium of 60 cents a barrel to Dated Brent, the highest since January 31.

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 stood at a premium of 47 cents to Dated Brent, according to data compiled by Bloomberg.

Brent for August settlement traded at $108.52 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $107.93 in the previous session. The September contract was at $107.74 at the same time today, a discount of 78 cents to August.

Mediterranean/Urals

A Urals crude cargo of 80,000 metric tons for loading July 26 to 27 at Novorossiysk in the Black Sea sold at more than $1 a barrel to Dated Brent, according to three traders. That is the highest level since at least July 1991, when Bloomberg started tracking the data.

Eni SpA (ENI) was looking 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, then withdrew its offer, according to the survey.

Urals in the Mediterranean held steady at a premium of 77 cents a barrel to Dated Brent.

Crude flows from Iraq through the Kirkuk-Ceyhan pipeline have resumed, according to a statement from the North Oil Co. Test pumping resumed at 2 p.m. Baghdad time at an average of 250,000 barrels a day and is expected to reach 350,000 barrels a day by midnight, the company said. Pumping was stopped yesterday night.

The CPC will ship 2.611 million metric tons next month, compared with 2.89 million tons in July, according to the schedule. That’s equal to 654,435 barrels a day, compared with 724,490 barrels this month, the most since November 2010.

The loading program comprises nine cargoes of 134,000 to 135,500 tons each and 16 consignments of 85,000 to 93,500 tons, according to the document.

West Africa

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

Total didn’t manage to sell a shipment of Cabinda for Aug. 2 to Aug. 3 loading at $1.1 a barrel less than Dated Brent, the survey showed. The company started offering the cargo on June 28 at a premium of 30 cents.

Six to eight cargoes of Angolan crude for loading in August are said to be unsold, according to two traders who participate in the market and asked not to be identified because the information is confidential. Most unsold cargoes are said to be Nemba and Cabinda grades as regular Asian buyers, especially Taiwanese and Indian refineries, have cut purchases recently, 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

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