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Shell Buys Brent, Oseberg Crudes; BFOE December Loadings to Fall

Mercuria Energy Trading SA failed to sell North Sea Forties crude at a smaller discount than yesterday. Royal Dutch Shell Plc (RDSA) bought Brent and Oseberg at higher prices than previous trades. Eni SpA sought to buy Russian Urals in northwest Europe without success.

Daily exports of North Sea Brent, Forties, Oseberg and Ekofisk crudes, which make up the Dated Brent benchmark, will decrease in December by 1.3 percent from November, loading programs obtained by Bloomberg News showed.

North Sea

Mercuria didn’t manage to sell Forties for loading Nov. 29 to Dec. 1 at a discount of 5 cents a barrel to Dated Brent, 5 cents less than its offer yesterday, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.

Shell was unable to buy Forties for Nov. 18 to Nov. 20 at a discount of 21 cents to Dated Brent, 4 cents higher than its bid yesterday, the survey showed.

BP Plc (BP/) sold Brent cargo B1106 for Nov. 28 to Nov. 30 to Shell at parity to Dated Brent, according to the survey. This compares with a discount of 15 cents for a cargo BP sold yesterday.

Shell also bought Oseberg cargo 20131105 for Nov. 24 to Nov. 26 from Vitol Group at 80 cents a barrel more than Dated Brent, the survey showed. The grade was last sold at a premium of 25 cents on Oct. 23.

For Ekofisk, Shell failed to buy a cargo for Nov. 27 to Nov. 30 at 60 cents a barrel more than Dated Brent, while BP didn’t find a buyer for Nov. 21 to Nov. 23 at a premium of 85 cents, according to the survey. Mercuria sought without success to sell the grade for Nov. 29 to Dec. 1 at 90 cents above the benchmark.

Brent for December settlement traded at $106.11 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $105.71 in the previous session. The January contract was at $106.10, a discount of 1 cent to December.

Shipments of BFOE crudes will average 987,097 barrels a day in December versus a revised 1 million barrels this month, according to the plans. November loadings are set to be the highest since February 2012, according to data compiled by Bloomberg.

Ekofisk is the only crude of the BFOE grades that will see a gain in shipments next month at 16 cargoes, compared with 15 lots in November. First oil production from ConocoPhillips’ Ekofisk South project in the North Sea was achieved Oct. 25, feeding into the Ekofisk blend.

Exports of Forties crude for December are planned at 20 cargoes of 600,000 barrels each, the same as for this month, while Brent loadings will also be unchanged at seven shipments each, according to loading programs.

Loadings of Alvheim crude for December are planned at four cargoes of 780,000 barrels each, unchanged from this month, while Troll exports for December will increase to 14 shipments of 600,000 barrels each, one more than November, shipping plans showed.

Flotta exports will be one cargo next month, compared with nothing in November, according to a schedule.

The share of crude from the Buzzard field in Forties output rose to 46 percent in the week ended Nov. 3, compared with 39 percent a week earlier, BP said on its website.

Urals/Mediterranean

In northwest Europe, Eni didn’t manage to sell 100,000 tons of Urals for Nov. 18 to Nov. 22 loading at $1.20 a barrel less than Dated Brent on a delivered basis to Rotterdam, the survey showed. The blend was bid at a discount of $1.10 yesterday for Nov. 22 to Nov. 26.

PKN Orlen SA, Poland’s largest oil company, bought 100,000 tons of Urals from Vitol for Nov. 23 to Nov. 27 delivery to Butinge terminal in Lithuania via a tender, according to two traders who participate in the market, asking not to be identified because the information is confidential.

Former petroleum facility guards in Libya are refusing to allow oil tankers to enter the Hariga terminal, Saad Al Fakhery, deputy president for Union for Oil and Gas Workers, said by phone from Benghazi. Earlier this week, state-run National Oil Corp. said tankers would likely load crude for export at Hariga starting next week, using stored oil.

West Africa

BP failed to sell 600,000 barrels of Nigerian Qua Iboe at $4.20 a barrel more than Dated Brent for Nov. 12 to Dec. 12 delivery to Rotterdam, or a premium of $4.05 for delivery to Lavera, France, during the same period, the survey showed.

Indian Oil Corp. is seeking to buy crude in its first tender for January, according to a document obtained by Bloomberg News. The tender will be awarded tomorrow.

Bharat Petroleum Corp. also issued a tender for January loading crude, another document showed. The tender closes at 5 p.m. local time tomorrow, with offers valid until Nov. 8.

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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