Vitol Offers to Sell Forties; Russia Boosts Primorsk Urals Crude

Vitol Group failed to sell North Sea Forties crude for a fourth day. There were no bids or offers for Russian Urals blend.

Russia is set to increase exports of Urals crude from Primorsk to 17 cargoes in the first half of September, up from 16 lots in a similar period this month, according to a preliminary loading program obtained by Bloomberg News.

North Sea

Vitol didn’t manage to sell Forties for Sept. 9 to Sept. 11 for the fourth day this week, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The trading house increased its offer by 30 cents a barrel from the previous day to a premium of 80 cents to Dated Brent. The blend traded on Aug. 19 at plus 60 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 $110.78 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $109.63 in the previous session. The November contract was at $109.63, a discount of $1.15 to October.

Platts raised the Forties crude de-escalator to 30 cents a barrel in September from 20 cents this month, the company said in a statement on its website.

Mediterranean/Urals

There were no Urals trades in the window, the survey showed. Yesterday 100,000 metric tons of the Russian grade sold at a discount of 50 cents to Dated Brent for loading in the Baltic Sea from Sept. 8 to Sept. 12.

OAO Surgutneftegas sold 100,000 tons for loading on Sept. 6 to Sept. 7 from Ust-Luga to Total, according to two people with knowledge of the matter. The cargo sold at a discount of about 50 to 60 cents to Dated Brent, the people said asking not to be identified as the information is confidential. The lot offered in the tender is an additional shipment, which was not included in the preliminary program for Sept. 1 to Sept. 10.

Russia will ship 12 lots of Urals from Ust-Luga from Aug. 31 to Sept. 15, compared to 10 this month, the preliminary loading program shows. Cargoes loading from Ust-Luga and Primorsk will be 100,000 tons each.

Urals exports from Novorossiysk in the Black Sea will be 12 lots totaling 1.265 million tons and two 80,000-ton cargoes of Siberian Light crude.

West Africa

Nigeria is scheduled to ship nine Qua Iboe cargoes in October, three less than in September, according to a loading program obtained by Bloomberg News. Shipments are 950,000 barrels each. Exports will be the lowest level in seven months.

Indian Oil Corp. issued a fourth tender to buy crude for Oct. 1 to Oct. 15. Part I of the tender closed at 10am local time on Aug. 27, and Part II at 3pm Aug. 38, a document obtained by Bloomberg News shows. Offers are valid until 5pm Aug. 29.

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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