Forties at One-Month High; Eni Buys Two Urals Crude Cargoes
North Sea Forties crude rose to the highest in more than a month as Royal Dutch Shell Plc (RDSA) bought. Eni SpA (ENI) purchased two cargoes of Urals as differentials for the Russian benchmark grade for delivery to Rotterdam rose to the highest in almost three months.
Russia will load 1.8 million metric tons of Urals from the Baltic Sea port of Primorsk in the first 10 days of May, a preliminary loading program obtained by Bloomberg News showed.
Shell purchased Forties from Vitol Group for loading from May 11 to May 13 at 10 cents a barrel less than Dated Brent, according to a Bloomberg survey of traders and brokers monitoring the Platts pricing window. That compares with a April 11 deal at minus 60 cents and is the smallest traded discount since March 18, compiled by Bloomberg show.
Total SA failed to buy a cargo loading May 11 to May 17 at 20 cents less than the benchmark, the survey showed.
Reported crude trading typically occurs during the Platts window, which ends at 4:30 p.m. London time. Forties loading in 10 to 25 days narrowed by 14 cents to a discount of 41 cents a barrel to Dated Brent, according to data compiled by Bloomberg.
Brent for June settlement traded at $99.36 a barrel on the ICE Futures Europe exchange in London at the close of the window, compared with $98.82 in the previous session. The July contract was at $99.20 at the same time today, a discount of 16 cents to June.
Statoil ASA (STL) said it made a “significant” find of additional resources at its Gullfaks field in the North Sea.
The discovery contains 40 million to 150 million of recoverable barrels of oil equivalents, the Stavanger, Norway- based company said in a statement.
Eni bought Urals from Vitol at $1.20 a barrel less than Dated Brent on a delivered basis to Rotterdam, according to the Platts survey. That compares with a April 9 trade at minus $1.95 and is the smallest discount since Jan. 21.
The company also purchased 80,000 tons of the grade from Vitol at a 40-cent discount to Dated Brent on a delivered basis to Augusta, Italy, the survey showed. That’s 10 cents lower than the April 16 deal.
The Urals discount to Dated Brent in the Mediterranean narrowed by 2 cents to 18 cents a barrel, data compiled by Bloomberg show. That’s the least since Jan. 24. In northwest Europe, the discount was at $1.57 a barrel compared with $1.60 at yesterday’s close. That’s the narrowest since Feb. 12.
Crude loadings from Ust-Luga in the first 10 days of May will be eight Urals cargoes, totaling 800,000 tons and one 80,000 cargo of Siberian Light grade, according to the schedule.
Exports from Novorossiysk will total 1.18 million tons of Urals over the same period and one lot of Siberian Light, the plan showed.
Benchmark Nigerian Qua Iboe blend was unchanged at $3.07 a barrel more than Dated Brent, data compiled by Bloomberg show.
The loading schedules for Nigeria crude are expected to be released at the start of next week, according to two people with knowledge of the plans, asking not to be identified as the information is confidential.
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