Eni Buys Urals at Three-Month Low; Libya Output Falls

(Corrects to say Awami works for oil ministry in 13th paragraph.)

Eni SpA (ENI) bought Russian Urals blend at the lowest price in three months. BP Plc failed to buy North Sea Forties crude at a lower price than the previous session.

Libyan oil production fell to one-eighth of its capacity as protests over pay and allegations of corruption spread to fields operated by Eni SpA and Repsol SA, executives at the state oil company said.

North Sea

BP didn’t manage to buy Forties for Sept. 9 to Sept. 13 loading at 65 cents a barrel more than Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. The grade was last offered at a premium of 80 cents on Aug. 23.

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 $114 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $110.78 in the previous session. The November contract was at $112.65, a discount of $1.35 to October.

Futures surged as much as $3.62, or 3.3 percent, to $114.35 today on the ICE exchange on news of production cuts in Libya and speculation fighting in Syria may escalate.

The share of Buzzard crude in the Forties stream was 58 percent in the week to Aug. 25, compared with 64 percent a week earlier, BP said on its website.

Two Forties cargoes for loading in September will be delayed by one to two days, said two people with knowledge of the matter. Lot F0812 will be exported on Sept. 2 to Sept. 4 while F0813 will be shipped on Sept. 4 to Sept. 6, they said.

The Alvheim oil field restarted on schedule after maintenance, according to operator Marathon Oil Corp.

Output is “a bit reduced the first 24 hours, but tomorrow we will see the first regular production again,” said Ingvar Solberg, a Stavanger, Norway-based spokesman for Marathon Oil, in e-mailed response to questions.

Urals/Mediterranean

Eni bought 100,000 metric tons of Urals for Sept. 16 to Sept. 20 loading from Glencore Xstrata Plc at 60 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, the survey showed. This is the lowest trade since May 13.

There were no trades for the grade in the Mediterranean, the survey showed. Urals in the region is priced near to parity with Dated Brent, after trading at a premium since late June, according to three of five traders surveyed by Bloomberg today.

Protesters in Libya yesterday stopped production at Repsol-operated Sharara and Eni-operated El Feel, or Elephant, fields in western Libya, according to the Libyan oil ministry’s Director of Measurement Ibrahim Al Awami. Output slumped to about 200,000 barrels a day, compared with 640,000 in August and its optimal capacity of 1.6 million, NOC Chairman Nuri Berruien said today in an interview from Tripoli.

Russia will ship 4.49 million tons of Urals from the Baltic port of Primorsk in September, or 1.1 million barrels a day, 25 percent more than planned in August, a final loading program showed.

Ust-Luga, also in the Baltic Sea, will load 2.297 million tons of Urals next month, up 32% from 1.8 million tons this month, according to the plan.

Novorossiysk port in the Black Sea will export 2.945 million tons of Urals in September, up 9.1 percent from a month earlier. The port will also load 240,000 tons of Siberian Light blend in September, unchanged from August.

Two 100,000-ton Urals cargoes at Ust-Luga and one 100,000-ton lot at Primorsk are unassigned, the plan showed.

PKN Orlen SA bought 100,000 tons of Urals for loading on Sept. 12 to Sept.16 from Gunvor Group Ltd. at a discount of 55 to 65 cents a barrel to Dated Brent via a tender, said two people with knowledge of the matter who asked not to be identified as the information is confidential.

Poland’s largest oil company bought the same amount of Urals on Aug. 23 for Sept. 8 to Sept. 12 from Royal Dutch Shell Plc at a discount of 50 to 60 cents via a tender, said two traders who participate in the market.

Algeria’s Sonatrach increased its official selling price for benchmark Saharan Blend crude for loading in September to $1.05 a barrel more than Dated Brent from 60 cents for August, according to an e-mailed price list.

West Africa

Nigeria will keep its Akpo crude exports for October unchanged at five cargoes of 1 million barrels each and cut Amenam loadings by one lot to two shipments of 950,000 barrels each, according to a loading program obtained by Bloomberg News.

Equatorial Guinea will export two lots each of Ceiba and Aseng grade in October, unchanged from September, a shipping plan showed. Ceiba cargoes are of 1 million barrels each, and Aseng of 650,000 barrels.

Republic of Congo will ship five 920,000-barrel consignments of Djeno, unchanged from September, and increased N’Kossa exports to two shipments of 950,000 barrels each, one more than a month earlier, according to a loading schedule.

Ghana will export three 950,000-barrel cargoes of Jubilee crude in October, one more than September, a plan showed.

To contact the reporters on this story: Sherry Su in London at lsu23@bloomberg.net; 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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