Shell Sells Forties Crude at Lower Price; Glencore Offers Urals

Royal Dutch Shell Plc (RDSA) sold North Sea Brent crude at a lower price than a previous bid. Glencore Xstrata Plc failed to sell Russian Urals blend in the Mediterranean even after lowering its offer.

Libyan crude production has been restored at all fields that were shut by protesters, Sliman Qajam, member of the parliament’s energy committee, said today from Tripoli.

North Sea

Shell sold Forties cargo F0910 for Sept. 19 to Sept. 21 to Eni SpA (ENI) at 30 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. The grade was bid at a premium of 74 cents for Sept. 21 to Sept. 23 in the previous session.

BP Plc (BP/) withdrew its earlier bid for Forties for loading on Sept. 22 to Sept. 25 at a premium of 69 cents a barrel to Dated Brent, the survey showed.

Brent for October settlement traded at $114.67 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $116.45 from the previous session. The November contract was at $113.32, a discount of $1.35 to October.

The Tambar and Oselvar fields in the North Sea restarted after repairs to Ula platform were completed, according to BP, the operator.

“Tambar and Oselvar came back in production during last Saturday and Sunday,” Jan Erik Geirmo, a company spokesman based in Stavanger, Norway, said in an e-mail. “We hope to have Blane on stream during today.”

Operations at three fields halted Aug. 7 after the breakdown of a gas turbine at the Ula platform, which handles crude from Tambar, Oselvar and Blane. Crude output from those fields feeds into the Ekofisk stream.

The share of Buzzard crude in the Forties system fell to 49 percent in the week to Sept. 8, down 6 percentage points from a week earlier, according to BP. That’s the lowest since July 28.

Urals/Mediterranean

Glencore failed to sell 140,000 metric tons of Urals for Sept. 19 to Sept. 23 loading at 70 cents a barrel less than Dated Brent on a delivered basis to Augusta, Italy, the survey showed. That’s 30 cents less than its offer on Sept. 6.

OAO Lukoil didn’t manage to buy 80,000 tons of Urals at parity to Dated Brent, according to the survey.

In northwest Europe, Eni was unable to buy 100,000 tons of Urals for Sept. 21 to Sept. 25 at a discount of 90 cents a barrel less than Dated Brent, the survey showed. The grade was last sold in the region at a discount of $1 a barrel on Sept. 4.

All export terminals in Libya will be open by middle of next week, Qajam said. “We have reached a final solution with the protesters.”

West Africa

Eight out of nine Nigerian Qua Iboe crude cargoes for October loading have been sold, and the status of the remaining shipment is unknown, said two traders who participate in the market, asking not to be identified because the information is confidential. Four lots will be shipped to India.

Cargoes of Qua Iboe were sold recently at a premium of more than $4 a barrel to Dated Brent, compared with premiums of $3 to $3.20 for September-loading consignments.

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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