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Eni Sells Urals Crude at Five-Month Low; Baltic Exports to Jump

Eni SpA (ENI) sold Russian Urals blend at the lowest price in five months in northwest Europe after loading programs showed October exports from two Baltic Sea ports will jump to a one-year high.

No bids or offers were made for North Sea Forties crude. A third cargo of the grade has been booked to South Korea after a four-month lull, as prices dropped.

North Sea

Brent for November settlement traded at $109.02 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $109.57 from the previous session. The December contract was at $108.07, a discount of 95 cents to November.

South Korean refiners Hyundai Oilbank Co., GS Caltex Corp. and SK Innovation Co. each bought a supertanker of Forties crude for October and November loading, according to nine people who participate in the market, asking not to be identified because the information is confidential. The cargoes will be the first U.K. exports to the Asian nation since the Maersk Sandra set sail on June 7.

SK Energy, the refining branch of SK Innovation, issued a rare tender to swap a supertanker of Iraqi Basrah Light blend for the same amount of Forties loading in end-October, which was won by Royal Dutch Shell Plc, according to six people who participate in the market. A Shell official in London declined to comment on the matter, as did Jung Min Yoo, a Seoul-based spokesman for SK Innovation.

Statoil ASA will delay the startups of Njord and Hyme fields until the second quarter of 2014 because of “additional time to plan and undertake remedial works,” Faroe Petroleum Plc, which holds stakes in the two projects, said in a statement today.

Urals/Mediterranean

Eni sold 100,000 metric tons of Urals for Oct. 6 to Oct. 10 loading to Vitol Group at $2 a barrel less than Dated Brent on a delivered basis to Rotterdam, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. This is the lowest since April 9, and compares with a discount of $1.40 for the last trade on Sept. 24.

Vitol sold another cargo for the same period in northwest Europe to Total SA at a discount of $1.90 a barrel to Dated Brent, the survey showed.

Combined Urals exports from Primorsk and Ust-Luga in October will total 7.591 million tons, or 1.79 million barrels a day, the most since October 2012, according to a loading program obtained by Bloomberg News.

Loadings from Ust-Luga will be a record 2.5 million tons, compared with a revised 2.197 million tons for September. Two crude slots of 100,000 tons each are not yet allocated. The September exports were revised down from 2.297 million tons after one cargo was added and two free positions weren’t filled.

Urals shipments from Primorsk will be 51 cargoes totaling 5.091 million tons, according to the schedule. This is the most since April, and compares with 4.49 million tons this month.

Exports of Urals from Novorossiysk on the Black Sea will be 2.91 million tons, down from 2.945 million tons for September, according to the plan. This includes 11 consignments of 135,000 to 145,000 tons each and 17 lots of 80,000 to 85,000 tons each, the plan showed. Two shipments of 80,000 tons of Siberian Light will also be exported from this port next month.

The final loading program for October is unchanged from the preliminary plan released earlier today.

OAO Surgutneftegas sold via a tender two Urals cargoes of 100,000 tons each for loading from the Baltic Sea, according to four people who participate in the market. One lot for loading Oct. 7 to Oct. 8 from Ust-Luga was sold to Talmay Trading and the other for Oct. 8 to Oct. 9 from Primorsk was bought by Royal Dutch Shell Plc.

West Africa

Angola, Africa’s second-largest oil producer, will export 53 crude cargoes in November, one less than in October, according to a final loading program obtained by Bloomberg News.

Shipments will total 50.88 million barrels, or 1.7 million barrels a day, the plan showed. That compares with a revised 51.76 million, or 1.67 million barrels a day, next month. Most consignments are of 950,000 to 1 million barrels.

The number of shipments in the final program is three less than the 56 cargoes, or 1.74 million barrels a day, listed in the preliminary schedule released on Sept. 17. Export plans for Cabinda, Gimboa, Hungo, Mondo, Nemba and Saturno were revised.

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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