Total Buys Urals Crude at Discount; Nigeria Raises Sept. Prices

Royal Dutch Shell Plc, Gunvor Group and Vitol Group failed to sell North Sea Forties crude for a second day. Total SA (FP) bought Russian Urals at a discount to Dated Brent, the first trade below the benchmark since June 7.

Nigeria raised its September official selling price for all grades, the Nigerian National Petroleum Corp. said in an e-mailed statement. The West African country’s loading programs for October cargoes are expected to be released this week.

North Sea

Gunvor didn’t sell Forties for Aug. 31 to Sept. 2 even after lowering its offer by 35 cents a barrel from yesterday to a premium of 40 cents to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Vitol Group offered the crude at 70 cents above Dated Brent for Sept. 9 to Sept. 11. Shell didn’t manage to sell a Sept. 3 to Sept. 5 lot at plus 70 cents.

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 $109.84 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $109.83 in the previous session. The November contract was at $108.78, a discount of $1.06 cents to October.

The share of Buzzard crude in Forties was 64 percent in the week to Aug. 18, unchanged from the previous week, BP Plc said in a note on its website.

Mediterranean/Urals

Vitol sold 100,000 metric tons of Urals to Total at a discount of 30 cents a barrel to Dated Brent for loading in the Baltic Sea from Sept. 7 to Sept. 11, the survey showed.

OAO Surgutneftegas offered 100,000 tons of Urals for loading Sept. 8 to Sept. 9 from Primorsk on the Baltic Sea in a tender, according to two people with knowledge of the matter.

Libya was due to ship 18 cargoes of its benchmark Es Sider crude this month, which is equivalent to 361,290 barrels a day, according to a loading program obtained by Bloomberg News. Es Sider, the country’s largest port, has been shut since July 28. Amna were schedule at 5.2 million barrels and 1.2 million barrels for Sirtica. The two crudes load at the Ras Lanuf terminal where NOC declared a force majeure on Aug. 18.

The Ras Lanuf and Zueitina ports are “on way” to resume operations as residents strive to end a sit-in by workers and guards, Oil Ministry Inspection and Measurement Director Ibrahim Al Awami said by telephone from Tripoli. The force majeure will be lifted by the end of the week, he said.

Iraq halted crude flows from Kirkuk to the Turkish port of Ceyhan yesterday evening, according to port agent Boutros Maritime & Transport SA.

West Africa

Vitol sought to sell Escravos for Sept. 5 to Sept. 10 at $5.35 more than Dated Brent delivered to Rotterdam, 5 cents less than its last offer on Aug. 15, the survey showed.

Nigeria raised its September official selling price for benchmark Bonny Light and Qua Iboe by 5 cents a barrel to $2.40 more than Dated Brent from a premium of $2.35 for August, the NNPC said in an e-mailed statement.

Equatorial Guinea will keep October exports of Zafiro unchanged at three shipments of 1 million barrels each, according to a loading program obtained by Bloomberg News.

Chad will export three cargoes of Doba in October, one more than this month, a loading program shows. Cargoes are 950,000 barrels each.

CPC Corp. is seeking to buy 1.9 million barrels of low-sulfur crude from West Africa for loading in October, according to a statement on the company’s website. The tender closes Aug. 21 at 10 a.m. local time.

India’s Bharat Petroleum Corp. is also seeking to buy low-sulfur grades for October loading, according to two traders with knowledge of the matter. The tender closes Aug. 23, with offer valid until Aug. 27, the traders said.

Indian Oil Corp. canceled a tender to buy crude for October, according to a notice e-mailed to potential sellers obtained by Bloomberg News. The tender was the company’s third for October cargoes. It bought 5 million barrels of West African grades in the two previous tenders.

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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