Shell Fails to Sell Urals Crude; Forties Pipeline System Resumes

Vitol Group failed to buy North Sea Forties crude for a third session, while Royal Dutch Shell Plc (RDSA) didn’t manage to sell Russian Urals blend in northwest Europe even after lowering its offer.

Throughput via the Forties Pipeline System was resumed after five days of maintenance work that started Aug. 1, BP Plc said. More than 80 North Sea oil fields feed into the link.

North Sea

Vitol bid for Forties loading on Aug. 21 to Aug. 25 at a premium of 90 cents a barrel to Dated Brent, or Aug. 24 to Aug. 28 at plus $1, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

No bids or offers were made for Brent, Oseberg and 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 $107.84 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $108.85 in the previous session. The October contract was at $106.86, a discount of 98 cents to September.

Flows through the BP-operated Forties Pipeline System are gradually rising after the link was shut on Aug. 1 for planned maintenance, Stephanie Millar, a company spokeswoman in Aberdeen said by phone today. Throughput will remain below normal levels until mid-September because of scheduled work on train 1 of the Kinneil oil and gas processing plant.

Shipments from Dansk Undergrunds Consortium, the producer part owned by A.P. Moeller-Maersk will drop to five cargoes in September, down from seven this month. Exports of Alvheim crude are scheduled at five consignments, compared with a revised August loading program of three lots.

Mediterranean/Urals

Shell failed to sell 100,000 metric tons of Urals for loading Aug. 21 to Aug. 25 from the port of Primorsk at a premium of 55 cents a barrel to Dated Brent, the survey showed. That’s 25 cents less than an offer yesterday for an earlier loading cargo.

Tupras Turkiye Petrol Rafinerileri AS’s tender to buy 85,000-135,000 tons of CPC Blend for Aug. 25 to Sept. 5 delivery closed today, according to two people with knowledge of the matter who asked not to be identified because the information is confidential.

Saudi Arabian Co., also known as Saudi Aramco, boosted its September official selling price for all its crudes from the Egyptian port of Sidi Kerir, according to two people with knowledge of the matter.

Prices of all four grades from Sidi Kerir were 55 cents a barrel more than those shipped from Ras Tanura in the Persian Gulf. Saudi Aramco raised the differential for Arab Extra Light the most, by $1.30 a barrel, to a premium of $2.30 to the Brent futures weighted average, or Bwave, published by the Intercontinental Exchange.

West Africa

Bharat Petroleum Corp. Ltd. bought 1 million barrels of Nigerian Akpo crude for September loading through a spot tender, according to two people with knowledge of the matter who asked not to be identified because the information is confidential.

To contact the reporter on this story: 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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