Glencore Seeks Forties Crude; Eni Buys Urals at Lower PriceSherry Su
Glencore Xstrata Plc failed to buy North Sea Forties crude even after raising its bid. Eni SpA bought Russian Urals blend at a bigger discount to Dated Brent in northwest Europe.
Bharat Petroleum Corp. bought 2 million barrels of Nigerian crude for loading in July from Glencore via a tender, said two traders who asked not to be identified because the information is confidential.
Glencore didn’t manage to buy Forties for loading June 1 to June 3 at 5 cents a barrel more than Dated Brent, up from its bid at minus 8 cents on May 10, a Bloomberg survey of traders and brokers monitoring the Platts pricing window showed.
China National United Oil Corp., or Chinaoil, was unable to sell Forties lot F0517 for May 24 to May 26 at 40 cents less than Dated Brent, the survey showed. This cargo was deferred for a second time by four days, said two people who asked not to be identified as the information is confidential.
Mercuria Energy Trading SA failed to buy Oseberg or Ekofisk for June 2 to June 4 at 70 cents a barrel more than Dated Brent, 20 cents higher than its bid on May 10, 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 fell by 3 cents to a discount of 16 cents a barrel to Dated Brent.
Brent for June settlement traded at $102.72 a barrel on the ICE Futures Europe exchange at the close of the window, compared with $101.99 in the previous session. The July contract was at $102.52 at the same time today, a discount of 20 cents to June.
Buzzard share in Forties increased to 42 percent in the week to May 12, compared with 27 percent a week earlier, BP Plc says on its website.
Forties daily output is forecast at 480,500 barrels in May, 475,700 barrels in June, 446,200 barrels in July and 300,000 barrels in August, according to BP.
Eni bought 100,000 metric tons of Urals for May 30 to June 3 loading from Royal Dutch Shell Plc at 95 cents a barrel less than Dated Brent on a delivered basis to Rotterdam, the Platts survey showed. That compares with a discount of 90 cents for a trade on May 10, according to data compiled by Bloomberg.
Vitol Group didn’t manage to sell 140,000 tons of Urals for May 26 to May 30 at 20 cents less than Dated Brent, on a delivered basis to Augusta, Italy, according to the survey.
Urals in the Mediterranean fell by 5 cents to a discount of 9 cents a barrel to Dated Brent, data compiled by Bloomberg showed. In northwest Europe, the discount was at 81 cents a barrel compared with 68 cents on May 10.
“In the future, the discounts of Urals to Dated Brent are going to be narrower” because Russia reduces exports from the Black Sea, Arsenije Dusanic, an analyst at JBC Energy GmbH, said at the Platts Crude Oil Summit in London today.
An unassigned 100,000 ton shipment for May 27 to May 28 loading from Ust-Luga and another 140,000 ton cargo from OAO Lukoil for May 23 to May 24 from Novorossiysk were dropped from the loading program, according to three people with knowledge of the loading program.
OAO Tatneft took the Primorsk position for May 21 to May 22 loading that had been unassigned in final loading program, people said.
Exports from Novorossiysk were revised to 2.82 million tons in May while loadings for Ust-Luga now stood at 2.1 million tons, according to the program.
Benchmark Nigerian Qua Iboe blend fell by 10 cents to $3.30 a barrel more than Dated Brent, data compiled by Bloomberg showed.
Bharat Petroleum, India’s second-largest state refiner, purchased about 1 million barrels each of Qua Iboe and Agbami grades, they said.