Shell Sells Forties at Six-Month Low; Kirkuk Exports to Increase

Royal Dutch Shell Plc (RDSA) sold North Sea Forties crude at the lowest differential in six months. No bids or offers were made for Russian Urals blend for a fifth day. Iraqi Kirkuk exports for November will increase by 36 percent from this month.

Russia will ship 24 cargoes of 100,000 metric tons each and one 60,000-ton lot of Urals crude from Primorsk on the Baltic Sea during Oct. 31 to Nov. 15, a preliminary loading program obtained by Bloomberg showed. This compares with 24 shipments of 100,000 tons each a month earlier.

North Sea

Shell sold Forties cargo F1105 for loading Nov. 6 to Nov. 8 to Petroineos, a joint venture between PetroChina Co. and Ineos Group AG, at 52 cents a barrel less than Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That’s the lowest since April 11 and compares with a premium of 36 cents for a trade on Oct. 22.

Trafigura Beheer BV was unable sell the grade for Nov. 15 to Nov. 17 at 80 cents a barrel more than Dated Brent, 15 cents more than its offer yesterday, according to the survey.

Brent for December settlement traded at $106.51 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $107.37 from the previous session. The January contract was at $106.19, a discount of 32 cents to December.

The sulfur de-escalator for Forties crude will be 30 cents a barrel from Nov. 1, unchanged from this month, Platts said a statement on its website. The de-escalator, a price adjustment, applies to cargoes that contain more than 0.6 percent sulfur to compensate buyers.

Ineos Group Holdings SA announced today it will immediately reopen Scotland’s Grangemouth petrochemical site and start up the adjacent refinery after forging a deal with the unionized workforce. The site provides steam and power to a facility that processes Forties crude from a North Sea pipeline, which continued to operate during the dispute.

Urals/Mediterranean

Ust-Luga on the Baltic Sea will load 12 Urals cargoes of 100,000 tons each in the same period, the plan showed.

Novorossiysk on the Black Sea will export five cargoes of 140,000 tons each, and nine 80,000-ton cargoes from Oct. 31 to Nov. 14, totaling 1.42 million tons, according to the schedule.

Iraq will increase shipments of Kirkuk crude in November via the Turkish port of Ceyhan to 20 cargoes, or 331,333 barrels a day, according to a loading program. This compares with 16 lots, or 243,871 barrels a day, in October.

West Africa

Nigeria will export eight Agbami cargoes for December, one more than November, according to a loading program obtained by Bloomberg News.

The nation will also export four lots each of Bonga, Forcados, Usan and Brass, two consignments each of Yoho and Escravos, and one shipment of Okwori, separate plans showed. Cargo sizes range from 650,000 barrels to 1 million barrels.

A Nigerian militant group said it’s in contact with the captors of two U.S. citizens abducted off the coast of the West African nation and is working to ensure they are well treated before being freed.

The unidentified Americans were seized from a vessel called the C-Retriever in the Gulf of Guinea yesterday in an act of piracy, the State Department said. The kidnappings were carried out by a “heavily armed auxiliary outfit” that made contact with a commander of the Movement for the Emancipation of the Niger Delta, the group said in an e-mailed statement

To contact the reporter on this story: Sherry Su in London at lsu23@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.