Eni Bids Urals at Eight-Month High; Forties Crude Fails to Trade
Eni SpA failed to buy Russian Urals blend in the Mediterranean, bidding at an eight-month high. No bids or offers were made for North Sea Forties crude.
Platts, the oil pricing agency, announced the first quality premiums for Oseberg and Ekofisk, two of the four North Sea crudes that form Dated Brent.
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 widened by 5 cents to a discount of 40 cents a barrel to Dated Brent, according to data compiled by Bloomberg.
Trafigura Beheer BV yesterday purchased Forties lot F0522 from Vitol Group for loading May 21 to May 23 at a discount of 35 cents a barrel to Dated Brent, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.
Brent for June settlement traded at $99.05 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $102.14 in the previous session. The July contract was at $98.64 at the same time today, a discount of 41 cents to June.
As of June 1, buyers will pay a premium 88.06 cents a barrel for Ekofisk and 98.05 cents for Oseberg to sellers on trades on the so-called “window,” Platts said today in a note on its website. The changes are designed to take into account their superior quality over Forties and Brent.
Eni failed to buy 80,000 metric tons of Urals for loading May 19 to May 23 at 15 cents a barrel less than Dated Brent on a delivered basis to Augusta, Italy, the Platts survey showed. That is the same as the discount for a deal done yesterday, which was the smallest since Aug. 20, according to data compiled by Bloomberg.
The company was unable to buy another Urals cargo of the same size for loading on May 11 to May 15 at a discount of 55 cents to the benchmark, the survey showed.
The Urals discount to Dated Brent in the Mediterranean shrank by 2 cents to 13 cents a barrel, data compiled by Bloomberg show. That’s the narrowest since Jan. 24. In northwest Europe, the discount was at 65 cents a barrel compared with 68 cents yesterday. That’s the smallest since Nov. 5, the data show.
Benchmark Nigerian Qua Iboe blend rose 5 cents to $3.50 a barrel more than Dated Brent, data compiled by Bloomberg show. That’s the most since April 8.
Nigeria’s output climbed 70,000 barrels to 1.88 million barrels a day in April, according to a Bloomberg survey of oil companies, producers and analysts showed. The country pumped 1.81 million in March, the lowest level since September 2009. Output is often disrupted by unrest in the Niger River delta, the country’s main oil-producing region.
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