Tenergy Sells Russian Urals Crude; Ineos Begins Grangemouth Halt

Tenergy Trading sold Russian Urals crude in the Mediterranean at a smaller discount than the previous trade, while Total SA failed to sell the blend in northwest Europe. There were no North Sea grades traded with bids and offers made for all four benchmark crudes.

Ineos Group Holdings SA today began shutting down the Grangemouth petrochemical plant because of a worker strike, the company said on its website. A full closure of the site, including the refinery, may halt crude flows in the Forties Pipeline System.

North Sea

Trafigura Beheer BV didn’t manage to buy Forties crude at a higher premium than last week. The company bid for Nov. 5 to Nov. 9 at 35 cents a barrel more than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares with a trade at a 30-cent premium on Oct. 11.

Mercuria Energy Trading SA was looking to buy Nov. 7 to Nov. 9 Forties at 20 cents more than Dated, while BP Plc bid for Nov. 6 to Nov. 10 at a 30-cent premium.

Royal Dutch Shell Plc withdrew an offer to sell either Brent crude for Oct. 26 to Oct. 28 at Dated Brent plus 20 cents, or Forties for Oct. 30 to Nov. 1 at plus 30 cents.

Statoil ASA offered two Oseberg cargoes at lower levels than last week. It sought to sell one lot for Oct. 31 to Nov. 2 at $1.30 a barrel more than Dated Brent, and another for Nov. 3 to Nov. 5 at plus $1.65, according to the survey. That’s 25 cents and 30 cents less, respectively, than its offer Oct. 11.

Statoil was unable to sell Ekofisk loading Oct. 28 to Oct. 30 for a third time since Oct. 10, even as the company lowered its offer to $1.00 a barrel more than the benchmark, 30 cents less than its last offer on Oct. 11, the survey showed.

Brent for November settlement traded at $110.11 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $110.67 from the previous session. The December contract was at $109.32, a discount of 79 cents to November.

Flaring of gases at Grangemouth is taking place ahead of a planned 48-hour strike on Oct. 20, Ineos said on its website. The company and U.K. labor union Unite met today with conciliation service ACAS to avert the strike, the union said. The site powers the Forties Pipeline System to which over 80 offshore oil fields are connected. About 390,000 barrels a day of Forties is due to load this month, October shipping plans obtained by Bloomberg News show. That equates to about 40 percent of the U.K.’s North Sea oil output.

The Kinneil oil and gas processing plant may fully resume today, according to three people with knowledge of the maintenance, asking not to be identified because the information is confidential. Partial maintenance, which has put restrictions on offshore output, was last due to finish on Oct. 11 to Oct. 12 from a previous restart target of Oct. 1.

Urals/Mediterranean

Tenergy sold 80,000 metric tons of Urals to OAO Lukoil for Oct. 31 to Nov. 4 loading at a discount of 55 cents a barrel to Dated Brent delivered to Augusta, Italy. That’s 35 cents higher than the last trade on Oct. 8.

Total failed to sell 100,000 tons of Urals for Oct. 24 to Oct. 28 at Brent minus $1.45 delivered to Rotterdam, the survey showed. That is unchanged from a bid by Gunvor Group for the same dates on Oct. 3.

PKN Orlen bought 100,000 tons of Urals for delivery to the Butinge terminal in Lithuania on Oct. 28 to Nov. 1 from China International United Petroleum & Chemical Corp., also known as Unipec, according to two people who participate in the market, asking not to be identified because the information is confidential

Exports of Azeri Light from Georgia’s Black Sea port Supsa will remain stable in November at four cargoes of 600,000 barrels each, a loading program obtained by Bloomberg News showed.

West Africa

A 28-inch line on the Trans Niger Pipeline has been closed because of a fire, days after it was opened on Oct. 9, Shell Plc said today in an e-mailed statement. Force majeure on Bonny Light exports remain, it said.

Vitol offered 950,000 barrels of Nigerian Qua Iboe at a premium of $3.80 to Dated Brent for loading in December. A two day loading window must be nominated by Nov. 8, according to the survey.

Indian Oil Corp. bought one cargo each of Qua Iboe, EA and Usan crudes from Vitol, three people who participate in the market said, asking not to be identified because the information is confidential. The company also bought one lot of Angolan Palanca from Vitol and Nigerian Okwuibome from GlencoreXstrata Plc. The cargoes are 1 million barrels each and will load in December, the people said.

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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