Shell Seeks Forties, Oseberg; December Azeri Exports Seen Stable

Royal Dutch Shell Plc failed to buy North Sea Forties and Oseberg crude grades at higher prices than deals yesterday. No bids or offers were made for Russian Urals in Europe. BP Plc sought to sell Nigerian Qua Iboe crude for a fourth day without success even after lowering the offer.

Daily exports of Azeri Light crude from the port of Ceyhan in Turkey will be little changed in December from this month, a loading program obtained by Bloomberg News showed.

North Sea

Shell didn’t manage to buy Forties for loading Nov. 29 to Dec. 1 at parity to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. This is 9 cents higher than a trade yesterday.

Shell was also unable to buy Oseberg for Nov. 27 to Nov. 30 at 85 cents a barrel more than the benchmark, the survey showed. This compares with a premium of 75 cents for a cargo it bought yesterday.

Brent for December settlement traded at $104.44 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $103.75 in the previous session. The January contract was at $104.42, a discount of 2 cents to December.

Urals/Mediterranean

Shipments of Azeri Light next month from the Baku-Tbilisi-Ceyhan pipeline will total 21.85 million barrels, or 704,839 barrels a day, according to the plan. That compares with 21.25 million, or 708,333 barrels a day, this month.

PKN Orlen SA, Poland’s largest oil company, bought 100,000 metric tons of Urals crude for delivery to Gdansk on Nov. 25 to Nov. 29 from Glencore Xstrata Plc, according to two people with knowledge of the tender results, asking not to be identified because the information is confidential.

West Africa

BP Plc offered 600,000 barrels of Qua Iboe at $4 a barrel more than Dated Brent for Nov. 12 to Dec. 12 delivery to Rotterdam, or a premium of $3.85 for delivery to Lavera, France, during the same period, the survey showed.

Bharat Petroleum Corp. bought 1 million barrels of Nigerian Qua Iboe crude for loading on Jan. 1 to Jan. 10 from Exxon Mobil Corp., said three traders who participate in the market.

Chevron Corp. plans to pipe Angolan Kuito crude into the Nemba grade from the middle of next month, said three traders involved in the region’s oil market. The company may not release any separate loading plan for Kuito from January, they said.

Kurt Glaubitz, a San Ramon, California-based spokesman for Chevron, didn’t respond to an e-mail and phone call yesterday from Bloomberg seeking comment on the Kuito plan.

Chevron discovered Kuito in 1997 and it became Angola’s first producing deep-water field two years later, according to Chevron’s website. The current production rate is about 60,000 barrels a day.

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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