BP Sells Forties at 2 Month Low; Russian 4Q Oil Exports to Drop

BP Plc (BP/) sold a cargo of North Sea Forties crude for immediate loading at the lowest level in more than two months. Petraco SpA failed to buy Russian Urals blend in Northwest Europe.

Russia plans to reduce crude shipments by 15 percent in the fourth quarter compared with this quarter, according to an Energy Ministry schedule obtained by Bloomberg News.

North Sea

Royal Dutch Shell Plc bought Forties F0905 for Sept. 28 to Sept. 30 loading from BP at 7 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares with previous trades at plus 65 cents and $1.09 a barrel on Sept. 10, and is the cheapest since June 27. The cargo was initially scheduled to load Sept. 10 to Sept. 12, according to a loading program obtained by Bloomberg News.

BP failed to sell Forties for Oct. 7 to Oct. 9 at a premium of 79 cents to the benchmark, while Trafigura Beheer BV was looking to buy an Oct. 10 to Oct. 15 cargo of the same grade at 60 cents more than Dated Brent.

Brent for November settlement traded at $108.85 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $108.37 from the previous session. The December contract was at $107.95, a discount of 90 cents to November.

BP forecasts Forties output will increase in the fourth quarter, the company said on its website. Production is estimated at 408,900 barrels a day this month, 463,300 barrels in October, 471,700 barrels in November and 478,600 barrels in December.

No shipments of Flotta crude are scheduled to load in October compared with one 600,000 barrel cargo due on Sept. 23, according to a loading program obtained by Bloomberg News.

Urals/Mediterranean

Petraco didn’t manage to buy 100,000 metric tons of Urals at 85 cents a barrel below Dated Brent for Oct. 9 to Oct. 13 loading at the Baltic ports of either Primorsk or Ust-Luga, the survey showed. The grade last traded in the window on Sept. 12 at a discount of $1.10.

Exports of Russian crude will be 48.52 million tons, or about 3.87 million barrels a day in the last quarter of 2013. That compares with 57.27 million tons in the third quarter, according to a previous schedule.

OAO Surgutneftegas offered 100,000 tons for loading from Ust-Luga on the Baltic Sea in a tender, according to two people who participate in the market, asking not to be identified because the information is confidential.

Hellenic Petroleum SA issued a tender to buy 80,000 tons of Urals for Oct. 6 to Oct. 10 delivery to Greece, according to two people who participate in the market, asking not to be identified because the information is confidential. The tender closes tomorrow.

Tupras Turkiye Petrol Rafinerileri AS is seeking to buy 80,000 to 140,000 tons of Urals for Oct. 5 to Oct. 15 delivery, according to two people who participate in the market, asking not to be identified because the information is confidential. The tender closes tomorrow.

Libya’s National Oil Corp. issued a tender to sell 1.2 million barrels of crude from the Waha field via the Mellitah terminal in end-September, two traders who received the notice said, asking not to be identified because the information is confidential. The tender closes tomorrow at 3pm local time.

Pumping of Iraqi crude to Ceyhan is still halted because of a leakage. Repairs will take about two days, according to port agent Boutros Maritime & Transport SA. About 350,000 barrels of crude are available for loading, the port agent said in an e-mailed report.

West Africa

BP offered 600,000 barrels of Qua Iboe at either $5.50 more than Dated Brent for Oct. 2 to Oct. 8 delivery to Rotterdam, or $5.35 to Lavera in France on the Dilong Spirit crude carrier, according to the survey. That is 20 cents and 15 cents lower, respectively, than its offer on Monday.

Taiwan’s state-owned refiner CPC Corp. is seeking to buy 1.9 million barrels of November-loading, low-sulfur crude from West Africa, according to a statement on the company’s website. The tender closes Sept. 23 at 10 a.m. local time, with offers valid until 7 p.m. on Sept. 25.

Tupras bought 950,000 barrels of Nigerian Brass crude for Oct. 29 to Oct. 30 loading in a tender from Eni SpA, according to three people who participate in the market. Tupras is not a regular buyer of West African crude and the purchase is probably a result of recent supply disruptions from Libya, two of the people said.

Indian Oil Corp. bought 1 million barrels each of Qua Iboe and EA grades for Nov. 1 to Nov. 15 loading, said two traders who participate in the market.

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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