Russian Urals Crude Bids Rise; Rosneft Sells Four Lots in Tender
Russian Urals crude failed to trade even after buyers raised bids for cargoes in both northwest Europe and the Mediterranean. No public bids or offers were made for North Sea Forties blend.
OAO Rosneft, Russia’s largest oil producer, sold four cargoes of 100,000 metric tons each of Urals for loading on July 10 to July 14 from the Baltic Sea port of Primorsk to BP Plc, said three traders who participate in the market.
Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Before the session, Forties loading in 10 to 25 days was 35 cents a barrel less than Dated Brent, compared with a discount of 48 cents yesterday, data compiled by Bloomberg show.
Brent for August settlement traded at $92.25 a barrel on the ICE Futures Europe exchange in London at the close of the window, down from $93.33 yesterday. The September contract was at $92.31, a premium of 6 cents to August.
Norway’s first industrywide strike since 2004 entered a fifth day, shutting down production of about 15 percent of the crude supply from western Europe’s largest exporter.
The three unions involved in the action over pensions are meeting tomorrow to discuss extending their walkout, said Leif Sande, president of Industry Energy, biggest of the unions. Prolonged disruptions in the past have typically prompted the government to force unions and companies into arbitration.
The dispute is costing 201 million kroner ($33 million) a day in lost revenue, according to the Norwegian Oil Industry Association, which estimates the strike is crimping national oil output by 240,000 barrels a day plus 11.9 million standard cubic meters of natural gas. Statoil ASA, the country’s biggest energy company, puts the daily loss at as much as 250,000 barrels.
Petraco Oil Co. didn’t manage to buy 100,000 tons of Urals for July 8 to July 12 at 55 cents a barrel less than Dated Brent on a Rotterdam delivery basis, according to a Bloomberg survey of traders and brokers monitoring the Platts trading window. That’s up from yesterday’s trade at a 75-cent discount, which was the smallest differential since Feb. 23.
Eni SpA tried without success to purchase a 140,000-ton cargo of the blend for July 12 to July 16 delivery at $1.40 less than Dated Brent delivered to Augusta, Italy, the survey showed. The grade last traded in the Mediterranean at a discount of $1.60 on June 19.
Urals was at 72 cents less than Dated Brent in northwest Europe, the highest since Feb. 23, compared with a discount of $1.85 yesterday, Bloomberg data show.
TNK-BP sold 100,000 tons of the crude for loading on July 16 to July 17 from Ust-Luga to Glencore International Plc, two traders who participate in the market said.
Vitol Group wasn’t able to sell 800,000 barrels of Gabon’s Oguendjo crude at a 20-cent premium to Dated Brent for July 15 to July 20 delivery to Rotterdam or the French port of Lavera.
PT Pertamina bought two 1 million-barrel cargoes of West African crude for loading in August via a tender, according to three traders involved in the region’s market.
The company bought one cargo of Angolan Girassol from BP Plc, and one shipment of Nigerian Bonga from Trafigura Beheer BV, said the people who declined to be identified because the information is confidential.
Nigeria plans to export four cargoes of Erha grade in August, unchanged from July, according to a loading program obtained by Bloomberg News. Each shipment is for 997,500 to 1 million barrels.
Bharat Petroleum Corp. issued a tender to buy crude for loading from Aug. 21 to Aug. 31, according to a document obtained by Bloomberg News. The tender closes on July 3 at 3 p.m. local time, with offers valid until 7 p.m. the following day, the document showed.
Qua Iboe was at $1.30 a barrel more than Dated Brent, the lowest since Oct. 27, 2010, compared with a premium of $1.33 yesterday, data compiled by Bloomberg show.
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