Morgan Stanley Buys North Sea Forties Crude; Shell, Total Bid
Morgan Stanley bought a cargo of North Sea Forties crude from BP Plc at the highest price in more than a week, while Royal Dutch Shell Plc and Total SA placed unsuccessful bids for cargoes.
Morgan Stanley paid 45 cents more than Dated Brent for a shipment of Forties, F0108, loading on Jan. 14 to Jan. 16, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed. That’s the highest since Dec. 20, when a Forties lot traded at a 60 cent premium. BP had bought lot F0108 at parity to the benchmark on Dec. 24.
Shell bid 55 cents more than Dated Brent for a cargo loading on Jan. 14 to Jan. 16 and a second consignment on Jan. 19 to Jan. 21. Total bid 30 cents more than the benchmark for a shipment on Jan. 23 to Jan. 28, according to the survey.
Trafigura Beheer BV offered a consignment of Forties on Jan. 21 to Jan. 28 at 85 cents more than Dated Brent, without finding a buyer.
Reported crude trading typically occurs during the Platts window, which ended at 12:30 p.m. London time today, earlier than its usual finish of 4:30 p.m. because of the New Year holiday. Forties loading in 10 to 25 days was 4 cents less than Dated Brent on Dec. 28, data compiled by Bloomberg show. That compares with a 9 cent discount on Dec. 27.
Brent for February settlement traded at $109.55 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $110 in the previous session. The March contract was at $108.37 a discount of $1.18 to February.
There were no bids or offers for Russian Urals grade, according to the Platts survey.
The Urals differential to Dated Brent in the Mediterranean was at minus $1.01 on Dec. 28, according to data compiled by Bloomberg. In northwest Europe, the discount to Dated Brent was at $1.35, the data showed.
Qua Iboe blend was at $2.46 a barrel more than Dated Brent on Dec. 28, according to data compiled by Bloomberg.
Angola’s output will increase by 30,000 barrels a day in December with the start of work at the project known as PSVM, while Nigeria’s production will decline by 25,000 barrels a day because of terrorist attacks, according to Vienna-based JBC Energy.
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