Thursday, March 31, 2011

Morgan, BP Buy Forties at Stable Price; IOC Seeks More Crude

By Sherry Su

Business ExchangeBuzz up!DiggPrint Email .BP Plc and Morgan Stanley bought North Sea Forties crude at prices little changed from yesterday. India Bharat Petroleum Corp. bought Nigerian Qua Iboe oil from Morgan Stanley, and Indian Oil Corp. is seeking more crude.

North Sea
BP bought one shipment of Forties for loading April 12 to April 14 from Total SA at 20 cents above benchmark Dated Brent, according to a survey of traders and brokers monitoring the daily Platts trading window. Morgan Stanley bought another cargo for April 17 to April 19 from Trafigura Beheer BV at the same premium, the survey showed.

Reported North Sea market activity typically occurs during the Platts window that ends at 4:30 p.m. in London. Prior to the window, Forties loading 10 to 21 days in the future cost 19 cents more than Dated Brent yesterday, compared with a premium of 22 cents March 29, according to data compiled by Bloomberg.

Brent for May settlement traded at $116.87 a barrel on the London-based ICE Futures Europe exchange at the close of the window, up from $115.23 yesterday. The June contract was at $116.75, 12 cents below May.

No bids or offers were placed for Russian Urals in northwest Europe for the third day. The grade was assessed at $3.91 a barrel below Dated Brent today, unchanged from yesterday, the Bloomberg data showed.

BG Group Plc, the U.K’s third-largest natural gas producer, said its North Sea Everest and Lomond fields will resume output “within a few weeks.”

The share of North Sea Buzzard crude in the Forties oil blend fell to 26 percent in the week to March 27, from 31 percent a week earlier, BP Plc said today on its website.

Petraco Oil Co. failed to sell 140,000 metric tons of Urals loading for April 17 to April 21 in the Mediterranean even after it lowered the offer by 10 cents to $3.20 a barrel less than Dated Brent, the survey showed.

Eni SpA sought to buy 80,000 tons of Urals for April 14 to April 18 at $3.40 below Dated Brent without success, while Vitol Group withdrew its earlier offer for the same volume for April 17 to April 21 at a discount of $3.10 to the benchmark, according to the survey.

OAO Surgutneftegaz sold 100,000 tons of Urals crude for loading April 13 to April 14 from the Baltic Sea port Primorsk to Repsol YPF SA through a spot tender, according to three traders who participate in the market.

West Africa
Bharat Petroleum, India’s second-largest state-run oil refiner, bought about 2 million barrels of Nigeria’s Qua Iboe crude for loading in May from Morgan Stanley, three people who participate in the market said today.

Indian Oil Corp., the country’s biggest refiner, issued its fourth spot tender for May-loading crude and the first one for June, official documents obtained by Bloomberg News show. Both tenders will be awarded April 7.

Two Congo’s N’Kossa shipments for May loading and one Djeno cargo for May 9 to May 10 were sold at unknown prices, according to traders involved in the transactions of the region’s oil.

For Angola crude, only Dalia and Kissanje shipments are available, and the rest were sold, they said.

To contact the reporter on this story: Sherry Su in London at

To contact the editor responsible for this story: Stephen Voss at

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