BP Sells Forties at Higher Level; Nigeria Raises Qua Crude Price

BP Plc (BP/) sold North Sea Forties crude at 39 cents a barrel more than a trade yesterday, while Eni SpA bought Russian Urals blend in Northwest Europe at a smaller discount the previous deal.

Nigeria raised its October official selling price for benchmark Bonny Light and Qua Iboe crudes to the highest level in 23 months, the Nigerian National Petroleum Corp. said in an e-mailed statement.

North Sea

Royal Dutch Shell Plc bought Forties lot F1002 for Oct. 7 to Oct. 9 loading at 46 cents more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares the trade between the same two companies at a two-month low of plus 7 cents yesterday.

Trafigura Beheer BV failed to buy Forties for Oct. 10 to Oct. 16 at a 60-cent premium for a second day.

Brent for November settlement traded at $109.94 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $108.85 from the previous session. The December contract was at $109.14, a discount of 80 cents to November.

ICE Futures Europe has extended a consultation period on its proposal to change the expiry dates for Brent futures and options contracts to one month ahead compared with current 15 days, the exchange said today in a notice on its website. The bourse will now take feedback on the amendments until Sept. 30, instead of Sept. 23.

Urals/Mediterranean

Eni bought 100,000 metric tons of Urals crude from Glencore Xstrata Plc at a discount of 85 cents a barrel to Dated Brent for loading Oct. 2 to Oct. 6 in the Baltic Sea. That’s 25 cents more than the last trade done on Sept. 12.

PKN Orlen bought 100,000 tons of the blend for loading Oct. 1 to Oct. 5 from the Baltic Sea via tender from Glencore, said four people who participate in the market. Poland’s largest oil company bought the cargo at a discount of about 80 to 85 cents to Dated Brent, three of the people said.

OAO Surgutneftegas sold 100,000 tons of Urals for Oct. 3 to Oct. 4 loading from Ust-Luga on the Baltic Sea to Repsol SA, according to four people who participate in the market. The cargo traded at around 65 cents below Dated Brent.

Socar Trading SA didn’t manage to sell 600,000 barrels of Azeri Light for Oct. 1 to Oct 5 loading at a premium of $4 a barrel to Dated Brent. That’s 70 cents less than its last offer on Sept. 17.

Oil output in Libya is expected to increase to 700,000 to 800,000 barrels today as production from the Sharara and El Feel fields resumes, Ibrahim Al Awami, the Oil Ministry’s director of measurement, said phone from Tripoli. The Brega, Zawiya and Mellitah terminals are operational, he said.

Iraq resumed partial pumping of crude via Turkey, state-run North Oil said today in a statement. Test flows started at a rate of 50,000 barrels a day and were expected to rise to the normal capacity of 325,000 barrels later today.

West Africa

BP offered 600,000 barrels of Qua Iboe at either $5.50 a barrel 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. The company made the same offer yesterday.

The price of Bonny Light and Qua Iboe was set at $3.40 a barrel more than Dated Brent, up $1 from September, according to NNPC’s statement. This is the highest since November 2011.

Bharat Petroleum Corp. is seeking to buy November-loading crude via a tender. Part 1 of the tender closes tomorrow at 1pm local time and Part 2 at 3pm Sept. 23, a document obtained by Bloomberg showed. Offers remain valid until 7 p.m. Sept. 24.

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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