Chevron Sells Forties Crude; Libya’s NOC Issues Force Majeure

Chevron Corp. (CVX) sold North Sea Forties crude at less than half the last traded differential in the window, after offering the cargo for a fourth time. Total SA and Eni SpA bought Russian Urals blend at lower prices.

National Oil Corp. declared a force majeure on crude and product loadings from Es Sider, Ras Lanuf, Zueitina and El Brega ports, according to document obtained by Bloomberg News.

North Sea

Chevron sold Forties F0902 for Sept. 7 to Sept. 9 loading at a premium of 60 cents a barrel, 55 cents less than its offer on Aug. 16, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. It traded at premium of $1.25 on Aug. 14.

Royal Dutch Shell Plc withdrew an offer for Forties loading Sept. 3 to Sept. 5 at 35 cents more than the cash cost of North Sea crudes for October, the survey showed.

No bids or offers were made for Brent, Oseberg or Ekofisk crudes. Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time.

Brent for October settlement traded at $110.41 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $110.19 in the previous session. The November contract was at $109.39, a discount of $1.02 cents to October.

Forties lot F0902 was delayed a second time by one day to Sept. 7 to Sept. 9, said two people with knowledge of the loading program, asking not to be identified because the information is confidential.

Mediterranean/Urals

Total bought 100,000 metric tons of Urals crude for loading at the Baltic Sea port of Primorsk on Aug. 30 to Sept. 3 from Glencore Xstrata Plc at a 25 cents a barrel above Dated Brent, the survey showed. That’s 40 cents less than the last trade reported in the window on Aug. 12.

Vitol Group sold 80,000 tons of the Russian blend to Eni for loading at the Mediterranean port of Novorossiysk on Aug. 30 to Sept. 3 at a premium of 15 cents to Dated Brent.

The four Libyan terminals “are closed due to Oil Security Guards who are on strike at these locations since the end of July 2013, which resulted total shutdown for these facilities and cease of all exports,” NOC said in the document which is dated Aug. 18 and signed by Chairman Nuri Berruien.

An NOC official said oil exports were currently at a rate of about 500,000 barrels a day, using the port of Zawiya and offshore loading platforms at the Mellitah, Al Jurf and Bouri fields, while another port, Hariga, will probably resume exports, at about 180,000 barrels a day, either tomorrow or the day after.

OAO Surgutneftegas sold to Shell 100,000 tons of Urals loading on Sept. 5 to Sept. 6 from the Baltic Sea port of Primorsk via a tender, according to two traders who participate in the market.

PT Pertamina, the Indonesian state-owned oil company, bought 950,000 barrels of Azerbaijan’s Azeri Light crude for October delivery, said a company official. The cargo is for its Balikpapan refinery in East Kalimantan, said the official, who asked not to be identified because he isn’t authorized to speak to the media.

PTT Pcl, Thailand’s state-owned oil company, bought 600,000 barrels of Algeria’s Saharan Blend for October delivery to IRPC Pcl’s Rayong refinery, said two people who participate in the market. The company bought the grade from Concord Energy Pte., said the people who asked not to be identified because they aren’t authorized to speak to the media.

West Africa

Indian Oil Corp. bought 1 million barrels each of Nigerian Qua Iboe and Equatorial Guinea’s Zafiro crude grades through a second tender for October loading, two traders with knowledge of the matter said, asking not to be identified because the information is confidential.

Mangalore Refinery & Petrochemicals Ltd. is seeking to buy 600,000 or 1 million barrels low-sulfur crude for loading Oct. 16 to Oct. 31 via a tender, according to a document obtained by Bloomberg News. The tender closes Aug. 23 at 9:30 am local time and offers are valid until 8pm Aug. 27.

Nigeria’s loading programs for October and official selling prices for September are expected to be released this week.

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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