Shell, Vitol Bid for Forties; Urals Primorsk Oil Exports to Drop

Benchmark North Sea Forties crude was bid higher with no trades done. Russia plans to ship less than 1 million barrels a day of Urals from the port of Primorsk for a third month, with shipments set to drop to the lowest in more than five years, a preliminary loading program showed.

Libya’s state-run National Oil Corp. reduced its official selling price of benchmark Es Sider crude for August to 20 cents less than Dated Brent, compared with a discount of 5 cents for July, according to a price list obtained by Bloomberg News.

North Sea

Royal Dutch Shell Plc (RDSA) failed to buy Forties for loading from Aug. 15 to Aug. 19 at a premium of 65 cents a barrel to Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. The company made the same bid for the grade yesterday.

Vitol Group wasn’t able to buy Forties for loading from Aug. 17 to Aug. 21 at 75 cents above Dated Brent, according to the survey. That’s 5 cents a barrel higher than the last cargo to trade in the window on July 23.

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.

Brent for September settlement traded at $107.32 cents barrel on the ICE Futures Europe exchange at the close of the window, compared with $107.42 in the previous session. The October contract was at $106.46, a discount of 86 cents to September.

Platts will keep the sulfur de-escalator unchanged for Forties at 20 cents a barrel in August for the second month in a row, the company said in a statement on its website.

Mediterranean/Urals

Socar Trading SA didn’t manage to sell 600,000 barrels of Azeri Light for Aug. 10 to Aug. 14 loading at a premium of $3.25 to Dated Brent, according to the survey.

There were no bids or offers for Urals crude.

The Baltic Sea port Primorsk will handle 38 Urals cargoes of 100,000 metric tons each in August, or 898,516 barrels a day, according to a loading program obtained by Bloomberg News. That’s 0.8 percent less than July. Prior to June, Primorsk had loaded more than 1 million barrels a day every month since at least March 2008, when Bloomberg began tracking the data.

Ust-Luga, also on the Baltic, will ship 18 cargoes of 100,000 tons each, or 425,613 barrels a day, according to the program. That’s unchanged from July, after one cargo was dropped this month, according to two people with knowledge of the matter who asked not to be identified because the information is confidential.

Exports from Novorossiysk on the Black Sea will fall to 3.01 million tons in August, or 711,719 barrels a day. The August schedule includes three 80,000-ton cargoes of Siberian Light grade and 26 consignments of Urals ranging from 80,000 to 145,000 tons.

Iraq plans to reduce exports of its Kirkuk crude in August from the Turkish port of Ceyhan to 15 cargoes, two less than this month, according to a loading program obtained by Bloomberg News.

Shipments will total 7.57 million barrels, or 244,194 barrels a day, the plan showed. That compares with 309,677 barrels planned for July.

Iraq halted crude flows through the Turkish port of Ceyhan today at 7 a.m. local time, according to port agent Boutros Maritime & Transport SA.

West Africa

Equatorial Guinea has cut September Zafiro crude exports to three cargoes, one less than in August, according to a loading program obtained by Bloomberg News. The country will also ship two lots of Ceiba blend in September, unchanged from August.

The Republic of Congo will reduce September shipments of Djeno crude to five cargoes, down from six the previous month, a loading program shows.

Nigeria, Africa’s largest oil producer, will keep daily crude exports for September little changed from August, according to loading programs obtained by Bloomberg News covering 17 grades excluding Bonny Light.

The nation will ship 63 cargoes totaling 1.94 million barrels a day, the schedules showed. Exports will comprise 12 consignments of Qua Iboe grade, seven of Agbami, five each of Brass, Akpo, Bonga and Forcados, four of Usan, three each of Amenam, Erha, Escravos and Antan, two each of Yoho and Okono, and one each of Abo, EA, Okwori and Pennington. The cargoes range in size from 250,000 to 1 million barrels.

It remains unclear whether Nigeria will export Bonny Light in September, four traders with knowledge of the loading program said. No shipments for this grade were planned for August.

Taiwan’s CPC Corp. bought two cargoes of Nemba crude and one of Cabinda for September-loading, three people with knowledge of the matter said. The company bought 3 million barrels of Angolan crude through a tender, the people said.

Indian Oil Co. bought two cargoes of Qua Iboe for September loading, according to three traders. The lots are 1 million barrels each, they said.

Bharat Petroleum Corp. is scheduled to award its tender for September-loading crude tomorrow, according to a document.

Angola’s final loading program for September is expected to be released tomorrow.

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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