Shell Sells Urals at Three-Month Low; Basrah Flow Cut

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

Royal Dutch Shell Plc (RDSA) sold Russian Urals blend at the lowest price in three months. There were no bids or offers for North Sea Forties crude.

Iraq will reduce daily exports of Basrah Light crude from the Persian Gulf in September to the lowest in at least 20 months, a loading program obtained by Bloomberg News showed.

North Sea

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

Brent for October settlement traded at $115.30 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $114 in the previous session. The November contract was at $113.89, a discount of $1.41 to October.

Urals/Mediterranean

Shell sold 100,000 metric tons of Urals for Sept. 13 to Sept. 17 loading to Total SA at 80 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. This is the lowest since May 13 and compares with a trade yesterday at discount of 60 cents.

OAO Surgutneftegas issued a tender to sell five Urals cargoes of 100,000 tons each loading from the Baltic Sea next month, according to two traders with knowledge of the matter. Two lots will be loaded on Sept. 15 to Sept. 16, and Sept. 17 to Sept. 18 from Ust-Luga, while the remainder will be shipped on Sept. 18 to Sept. 19, Sept. 21 to Sept. 22 and Sept. 24 to Sept. 25 from Primorsk. The tender closes tomorrow.

Libya’s oil output is still below 200,000 barrels a day and production from Sharara and El Feel fields halted for a third day as the pipeline carrying the crude to export terminals was shut by oil workers and security guards, Ibrahim Al Awami, Director of Measurement at the oil ministry said in a telephone interview from Tripoli.

Prime Minister Ali Zaidan told a press conference in Tripoli that he rejects the notion of a federal state in the east of the country. At least four major oil ports, including Es Sider, the nation’s largest, remain closed, according to NOC.

NOC reduced benchmark Es Sider crude price for September to 30 cents a barrel less than Dated Brent, compared with a discount of 20 cents for August, according to a price list obtained by Bloomberg News.

Iraq will ship about 52.86 million barrels, or 1.76 million barrels a day, from the Basrah Oil Terminal, according to the plan. This is the lowest since at least February 2012 when Bloomberg started tracking the data and compares with 2.09 million a day this month.

Pumping of Iraqi Kirkuk crude to Turkish port of Ceyhan stopped at 4:30 p.m. local time today, according to shipping agent Boutros Maritime & Transports SA.

West Africa

Nigeria will export two cargoes of Erha crude in October, one less than September, and shipments of Antan will be one versus three for this month, according to loading programs obtained by Bloomberg News. Erha lots are 998,000 barrels each, while Antan is 950,000 barrels. The nation will increase loadings of Okwori to two 650,000-barrel cargoes from one.

Bharat Petroleum Corp. bought 1 million barrels each of Nigerian Agbami and Yoho crude for October loading via a tender, according to three traders who asked not to be identified because the information is confidential.

The Yoho cargo will be supplied by Exxon Mobil Corp., while the Agbami shipment was purchased from Statoil ASA, the traders said.

PT Pertamina bought 950,000 barrels of Nigeria’s Bonny Light for October delivery, according to an official at Indonesia’s state-owned oil company. The cargo will be sent to the Cilacap refinery in Java.

Glencore Xstrata Plc sold 1 million barrels of Angolan Kissanje crude to Mangalore Refinery & Petrochemicals Ltd. for October loading at about 10 cents to 20 cents a barrel less than Dated Brent, said two traders with knowledge of the matter.

Duke Oil Ltd., a unit of state-owned Nigerian National Petroleum Corp., sold via a tender yesterday 950,000 barrels of Qua Iboe for loading Oct. 13 to Oct. 14, say three traders who participate in the market.

Exxon Mobil sold two Qua Iboe cargoes for loading on Oct. 27 to Oct. 28, and Oct. 29 to Oct. 30, said two traders with knowledge of the matter. The cargoes were offered at about $4.00 a barrel more than Dated Brent, compared with trades at premiums of $3 to $3.20 for September shipments.

Taiwan CPC Corp. bought 2 million barrels of Angolan Nemba crude, and 1 million barrels each of Angola’s Cabinda and Ghana’s Jubilee grades via a tender, said two traders who participate in the region’s oil market.

The company bought Cabinda and Nemba from Chevron Corp., another Nemba cargo from Total and a shipment of Jubilee from Vitol Group, they said.

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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