Commodity Futures
INDEX NAME VALUE CHANGE OPEN HIGH LOW TIME
UBS BLOOMBERG CMCI 1244.34 -14.23 1254.69 1257.17 1237.35 11:39
S&P GSCI 492.47 -9.12 499.52 500.37 489.74 11:39
RJ/CRB Commodity 266.67 -3.04 267.04 267.55 265.43 11:29
Rogers Intl 3041.47 -41.19 3077.65 3077.85 3023.99 11:38
Energy
PRICE CHANGE %CHANGE TIME
BRENT CRUDE FUTR (USD/bbl.) 72.120 -2.000 -2.70 11:29
GAS OIL FUT (ICE) (USD/MT) 582.500 -13.500 -2.27 11:29
GASOLINE RBOB FUT (USd/gal.) 189.550 -4.020 -2.08 11:29
HEATING OIL FUTR (USd/gal.) 190.120 -6.180 -3.15 11:29
NATURAL GAS FUTR (USD/MMBtu) 5.461 0.065 1.20 11:29
WTI CRUDE FUTURE (USD/bbl.) 73.360 -1.920 -2.55 11:29
Agriculture
PRICE CHANGE %CHANGE TIME
CANOLA FUTR (WCE) (CAD/MT) 380.500 -3.800 -0.99 11:29
COCOA FUTURE - LI (GBP/MT) 2280.000 -5.000 -0.22 11:24
COCOA FUTURE (USD/MT) 3100.000 -16.000 -0.51 11:29
COFFEE 'C' FUTURE (USd/lb.) 134.400 0.750 0.56 11:29
CORN FUTURE (USd/bu.) 371.500 -3.500 -0.93 11:29
COTTON NO.2 FUTR (USd/lb.) 74.340 0.530 0.72 11:29
FCOJ-A FUTURE (USd/lb.) 134.550 0.250 0.19 11:27
LUMBER FUTURE ($/1,000 board ft.) 278.300 -2.800 -1.00 11:20
OAT FUTURE (USd/bu.) 240.000 -1.000 -0.41 11:16
ROUGH RICE (CBOT) (USD/cwt) 14.370 0.005 0.03 11:28
SOYBEAN FUTURE (USd/bu.) 943.250 -8.750 -0.92 11:29
SOYBEAN MEAL FUTR (USD/T.) 269.800 -1.200 -0.44 11:29
SOYBEAN OIL FUTR (USd/lb.) 38.190 -0.440 -1.14 11:29
SUGAR #11 (WORLD) (USd/lb.) 26.480 -0.420 -1.56 11:29
WHEAT FUTURE(CBT) (USd/bu.) 498.250 -10.250 -2.02 11:29
WHEAT FUTURE(KCB) (USd/bu.) 545.000 -7.750 -1.40 11:28
WOOL FUTURE (SFE) (cents/kg) 995.000 -3.000 -0.30 02/12
Industrial Metals
PRICE CHANGE %CHANGE TIME
COPPER FUTURE (USd/lb.) 309.300 -5.850 -1.86 11:29
Precious Metals
PRICE CHANGE %CHANGE TIME
GOLD 100 OZ FUTR (USD/t oz.) 1087.700 -7.000 -0.64 11:29
SILVER FUTURE (USD/t oz.) 15.390 -0.200 -1.28 11:29
Friday, February 12, 2010
2/12/2010 @ 12 noon
Energy Prices
PETROLEUM ($/bbl)
PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 73.45 -1.83 -2.43 11:28
Dated Brent Spot 71.56 -1.93 -2.62 11:37
WTI Cushing Spot 73.99 -1.29 -1.71 09:05
PETROLEUM (¢/gal)
PRICE* CHANGE % CHANGE TIME
Nymex Heating Oil Future 190.77 -5.53 -2.82 11:28
Nymex RBOB Gasoline Future 190.05 -3.52 -1.82 11:28
NATURAL GAS ($/MMBtu)
PRICE* CHANGE % CHANGE TIME
Nymex Henry Hub Future 5.47 .07 1.32 11:28
Henry Hub Spot 5.50 .02 .36 02/11
New York City Gate Spot 6.65 -.02 -.30 02/11
PETROLEUM ($/bbl)
PRICE* CHANGE % CHANGE TIME
Nymex Crude Future 73.45 -1.83 -2.43 11:28
Dated Brent Spot 71.56 -1.93 -2.62 11:37
WTI Cushing Spot 73.99 -1.29 -1.71 09:05
PETROLEUM (¢/gal)
PRICE* CHANGE % CHANGE TIME
Nymex Heating Oil Future 190.77 -5.53 -2.82 11:28
Nymex RBOB Gasoline Future 190.05 -3.52 -1.82 11:28
NATURAL GAS ($/MMBtu)
PRICE* CHANGE % CHANGE TIME
Nymex Henry Hub Future 5.47 .07 1.32 11:28
Henry Hub Spot 5.50 .02 .36 02/11
New York City Gate Spot 6.65 -.02 -.30 02/11
Ghana Blocks Exxon Oil-Field Deal
By WILL CONNORS
LAGOS, Nigeria—The government of Ghana blocked the estimated $4 billion sale of a stake in a huge oil field, foiling months of talks between potential buyer Exxon Mobil Corp. and the stake's owner, Kosmos Energy LLC.
The government accused Dallas-based Kosmos of cutting Ghana's state-run oil company out of discussions about the field's development and then sharing information about the field with potential buyers without government permission. The government in recent months itself has scouted for partners to work with Ghana's oil company, including state-run China National Offshore Oil Corp.
Ghanaian Energy Minister Joe Oteng-Adjei said state-run Ghana National Petroleum Corp. would be the only entity allowed to buy the Kosmos stake in the so-called Jubilee field.
Last week, he sent a letter to Exxon informing the company that a deal with Kosmos wouldn't receive government approval.
The letter, reviewed by The Wall Street Journal, said the government is "unable to support an Exxon Mobil acquisition of Kosmos's Ghana assets."
Instead, it "supports the strategic intent and efforts of [Ghana National Petroleum] to acquire Kosmos's Ghana assets at a fair market value," the letter said.
"We felt that it had gone far enough that we needed to make a clear-cut policy statement to [Exxon] that if they want to come into the country, let them come in through another avenue and respect our laws," Mr. Oteng-Adjei said Monday in an interview. "We want to do things right from the beginning."
The decision is the second recent setback for Exxon's expansion plans in Africa, after an attempt to buy a stake in a big Uganda field also fell through.
With huge reserves in nearby Nigeria and recent discoveries up the coast in Sierra Leone, the Gulf of Guinea has emerged as a major new oil region.
Jubilee is one of the largest oil discoveries in recent years and, like Nigeria, holds the type of light, sweet crude oil that is in high demand globally.
Kosmos, which is funded by private-equity firms Blackstone Group LP and Warburg Pincus LLC, agreed in October to sell its 23.5% stake in Jubilee, which holds an estimated 1.8 billion barrels of oil. The deal was valued at an estimated $4 billion.
A person close to Kosmos said neither the Ghanaian government nor its state-owned company has the right to "withhold consent for a technically qualified and financially capable company."
The person said Ghana National Petroleum failed to make a proposal for Kosmos's stake when it had the opportunity.
Mr. Oteng-Adjei said Ghana has retained Morgan Stanley as its adviser and remains ready to negotiate with Kosmos. "If they change their minds and decide to stay and work with us, we will work with them like any other partners," Mr. Oteng-Adjei said.
Mr. Oteng-Adjei declined to comment on talks with other parties, including Cnooc.
A Ghana National Petroleum official didn't respond to requests for comment.
"Exxon Mobil routinely evaluates potential development opportunities around the world," an Exxon spokesman said by email. "We do not comment on the details of commercial discussions or opportunities."
LAGOS, Nigeria—The government of Ghana blocked the estimated $4 billion sale of a stake in a huge oil field, foiling months of talks between potential buyer Exxon Mobil Corp. and the stake's owner, Kosmos Energy LLC.
The government accused Dallas-based Kosmos of cutting Ghana's state-run oil company out of discussions about the field's development and then sharing information about the field with potential buyers without government permission. The government in recent months itself has scouted for partners to work with Ghana's oil company, including state-run China National Offshore Oil Corp.
Ghanaian Energy Minister Joe Oteng-Adjei said state-run Ghana National Petroleum Corp. would be the only entity allowed to buy the Kosmos stake in the so-called Jubilee field.
Last week, he sent a letter to Exxon informing the company that a deal with Kosmos wouldn't receive government approval.
The letter, reviewed by The Wall Street Journal, said the government is "unable to support an Exxon Mobil acquisition of Kosmos's Ghana assets."
Instead, it "supports the strategic intent and efforts of [Ghana National Petroleum] to acquire Kosmos's Ghana assets at a fair market value," the letter said.
"We felt that it had gone far enough that we needed to make a clear-cut policy statement to [Exxon] that if they want to come into the country, let them come in through another avenue and respect our laws," Mr. Oteng-Adjei said Monday in an interview. "We want to do things right from the beginning."
The decision is the second recent setback for Exxon's expansion plans in Africa, after an attempt to buy a stake in a big Uganda field also fell through.
With huge reserves in nearby Nigeria and recent discoveries up the coast in Sierra Leone, the Gulf of Guinea has emerged as a major new oil region.
Jubilee is one of the largest oil discoveries in recent years and, like Nigeria, holds the type of light, sweet crude oil that is in high demand globally.
Kosmos, which is funded by private-equity firms Blackstone Group LP and Warburg Pincus LLC, agreed in October to sell its 23.5% stake in Jubilee, which holds an estimated 1.8 billion barrels of oil. The deal was valued at an estimated $4 billion.
A person close to Kosmos said neither the Ghanaian government nor its state-owned company has the right to "withhold consent for a technically qualified and financially capable company."
The person said Ghana National Petroleum failed to make a proposal for Kosmos's stake when it had the opportunity.
Mr. Oteng-Adjei said Ghana has retained Morgan Stanley as its adviser and remains ready to negotiate with Kosmos. "If they change their minds and decide to stay and work with us, we will work with them like any other partners," Mr. Oteng-Adjei said.
Mr. Oteng-Adjei declined to comment on talks with other parties, including Cnooc.
A Ghana National Petroleum official didn't respond to requests for comment.
"Exxon Mobil routinely evaluates potential development opportunities around the world," an Exxon spokesman said by email. "We do not comment on the details of commercial discussions or opportunities."
Nigeria's New Leader Woos Oil Companies.
By WILL CONNORS in Lagos, Nigeria, And SPENCER SWARTZ in London
Nigeria's new acting president, Goodluck Jonathan, is attempting to breathe life into the nation's ailing energy sector just two days after assuming the duties of President Umaru Yar'Adua, who has been out of the country since November with health problems.
Mr. Jonathan summoned several executives from foreign oil companies on Thursday to meet with top Nigerian officials. A focal point of the talks: militants who have sabotaged pipelines, disrupting production and oil prices.
Mr. Jonathan is Nigeria's first president from an ethnic minority of the Niger Delta—an area the size of England that is rich in oil but long plagued by poverty and violence against the energy industry. That ethnic background could help him work with militants in consolidating the peace process, say officials and analysts.
View Full Image
Agence France-Presse/Getty Images
Acting President Jonathan
.Commodities
Oil, Metals Get Over a Hump
."There's concern that the militants are getting irritated and worried," said Emmanuel Egbogah, the president's oil adviser.
Under the peace program that began last summer, the Nigerian government has essentially paid militants to lay down their arms. However, the delta's main militant group recently called off its cease fire because of its unhappiness over how little money the government is putting into the region.
Wale Tinubu, chief executive of Oando PLC, Nigeria's biggest nonstate energy company by revenue and oil production, said he thinks Mr. Jonathan's ascent to power could spur the reconciliation process between the government and militants.
"Jonathan will make a renewed push towards peace in the Delta and I do believe that will reassure investors in the oil industry," said Mr. Tinubu who wasn't at Thursday's government meeting. Executives from Chevron Corp., ExxonMobil Corp. and Royal Dutch Shell PLC, among other companies, attended the meeting with government officials, according to Mr. Egbogah, the government oil adviser.
Nigeria has long been a key crude supplier to the U.S. and Europe, but its oil-pumping capacity has flattened out over the past five years or so.
Output from new and lucrative Nigerian offshore oil projects has been offset by regular militant attacks—and by natural decline rates—at onshore locations.
U.K. consultants Wood Mackenzie estimate that Nigeria's actual oil production could hit three million barrels a day by 2016 from just over two million day currently, representing a sharp revision downward from projections a few years ago.
"Nigeria's reserves are probably still there but the growth in output is a lot slower," due to lagging investment and fewer barrels being generated from aging fields, said Stewart Williams, a senior Africa energy analyst at Wood Mackenzie.
Foreign executives have been concerned not only with the militant attacks, but also pending petroleum-industry legislation. The legislation is likely to result in higher taxes and reduced profits for oil companies, but it has stalled as Nigeria's president was out of the country. Mr. Yar'Adua traveled to Saudi Arabia in November for medical treatment for a heart condition and hasn't been seen in public since.
Mr. Williams of Wood Mackenzie says if long-delayed oil legislation were to be passed, and approved with Mr. Jonathan's backing, such a move could face questions. Political opponents, for instance, may challenge its legality since Mr. Jonathan is acting simply as interim president.
Mr. Jonathan has tried to make his presence felt quickly. Even before taking up his new post Tuesday, Mr. Jonathan wrote a letter to the country's oil minister asking him to halt all sales of oil blocks until the political vacuum had been addressed.
Then, hours after giving a national television address accepting his new position, Mr. Jonathan demoted the country's controversial Attorney General, Michael Aondoakaa, to Minister of Special Duties. Some lawmakers have questioned Mr. Jonathan's use of executive power.
Nigeria's new acting president, Goodluck Jonathan, is attempting to breathe life into the nation's ailing energy sector just two days after assuming the duties of President Umaru Yar'Adua, who has been out of the country since November with health problems.
Mr. Jonathan summoned several executives from foreign oil companies on Thursday to meet with top Nigerian officials. A focal point of the talks: militants who have sabotaged pipelines, disrupting production and oil prices.
Mr. Jonathan is Nigeria's first president from an ethnic minority of the Niger Delta—an area the size of England that is rich in oil but long plagued by poverty and violence against the energy industry. That ethnic background could help him work with militants in consolidating the peace process, say officials and analysts.
View Full Image
Agence France-Presse/Getty Images
Acting President Jonathan
.Commodities
Oil, Metals Get Over a Hump
."There's concern that the militants are getting irritated and worried," said Emmanuel Egbogah, the president's oil adviser.
Under the peace program that began last summer, the Nigerian government has essentially paid militants to lay down their arms. However, the delta's main militant group recently called off its cease fire because of its unhappiness over how little money the government is putting into the region.
Wale Tinubu, chief executive of Oando PLC, Nigeria's biggest nonstate energy company by revenue and oil production, said he thinks Mr. Jonathan's ascent to power could spur the reconciliation process between the government and militants.
"Jonathan will make a renewed push towards peace in the Delta and I do believe that will reassure investors in the oil industry," said Mr. Tinubu who wasn't at Thursday's government meeting. Executives from Chevron Corp., ExxonMobil Corp. and Royal Dutch Shell PLC, among other companies, attended the meeting with government officials, according to Mr. Egbogah, the government oil adviser.
Nigeria has long been a key crude supplier to the U.S. and Europe, but its oil-pumping capacity has flattened out over the past five years or so.
Output from new and lucrative Nigerian offshore oil projects has been offset by regular militant attacks—and by natural decline rates—at onshore locations.
U.K. consultants Wood Mackenzie estimate that Nigeria's actual oil production could hit three million barrels a day by 2016 from just over two million day currently, representing a sharp revision downward from projections a few years ago.
"Nigeria's reserves are probably still there but the growth in output is a lot slower," due to lagging investment and fewer barrels being generated from aging fields, said Stewart Williams, a senior Africa energy analyst at Wood Mackenzie.
Foreign executives have been concerned not only with the militant attacks, but also pending petroleum-industry legislation. The legislation is likely to result in higher taxes and reduced profits for oil companies, but it has stalled as Nigeria's president was out of the country. Mr. Yar'Adua traveled to Saudi Arabia in November for medical treatment for a heart condition and hasn't been seen in public since.
Mr. Williams of Wood Mackenzie says if long-delayed oil legislation were to be passed, and approved with Mr. Jonathan's backing, such a move could face questions. Political opponents, for instance, may challenge its legality since Mr. Jonathan is acting simply as interim president.
Mr. Jonathan has tried to make his presence felt quickly. Even before taking up his new post Tuesday, Mr. Jonathan wrote a letter to the country's oil minister asking him to halt all sales of oil blocks until the political vacuum had been addressed.
Then, hours after giving a national television address accepting his new position, Mr. Jonathan demoted the country's controversial Attorney General, Michael Aondoakaa, to Minister of Special Duties. Some lawmakers have questioned Mr. Jonathan's use of executive power.
Thursday, February 11, 2010
Oil products stored in tankers at sea fall. Classic!
Trend over recent weeks likely to put more pressure on clean tanker market
(LONDON) The volume of refined oil products held on tankers at sea has fallen in recent weeks and is likely to put more pressure on the clean tanker market already struggling with supply worries, analysts said on Tuesday.
Last year a price play known as a contango, or cheaper prompt oil, had encouraged traders to store cargoes at sea with a view to selling them later at higher prices, helping to soak up available vessels.
But the contango on the oil futures market has narrowed in recent weeks, making it less attractive to hold stocks in floating storage.
Broker ICAP Shipping said on Tuesday the volume of clean oil products held on tankers at sea had fallen to 80.22 million barrels from 89.41 million barrels last month.
ICAP Shipping estimated that 102 tankers were storing clean oil products globally, down from 116 vessels on Jan 12.
'Floating storage coming off does signal that demand is picking up but it also adds supply growth to the market which will keep (freight) rates in check,' Tim Smith, a shipping analyst with consultants MSI, said. 'In the short term it will have a negative impact on the tanker market because the supply will have an immediate effect and the owners coming back with tonnage will need to get trade for their vessels.'
Another shipping analyst estimated around 107 tankers were storing oil products at the moment.
Broker SSY said separately on Monday the volume of clean oil products had dropped at the end of January to 72.67 million barrels or 102 tankers versus 85.63 million barrels or 122 vessels at end-December.
No official data exists for storage volumes at sea. Traders of middle distillates, such as gas oil for heating, said the amount held at sea still remained unexpectedly high given the cold weather in the Northern Hemisphere.
'It reflects to me a smaller change than we thought we would have seen,' a distillates trader said, referring to the data.
Traders said bulk of the clean products in storage at sea are middle distillates.
The volume of crude oil in storage has also fallen.
Broker E A Gibson estimated the total number of tankers employed for both clean products and crude oil at the end of January had fallen to 119 vessels from 141 at the end of 2009.
'Given the support to rates in 2009, storage will be a key factor in determining the market in 2010,' E A Gibson said.
SSY estimated that the volume of stored crude oil dropped to 25.64 million barrels or 14 vessels at the end of last month from 40.85 million barrels or 23 ships at the end of 2009.
SSY said 14 Very Large Crude Carriers (VLCCs) were holding crude at the end of January compared with 22 VLCCs and a smaller aframax tanker at the end of December.
A VLCC can store up to two million barrels of oil. Brokers estimated that the volume of crude oil in storage reached a peak in April last year at around 60 VLCCs.
Analysts have said the crude tanker market was less likely to be less affected if crude oil stocks come off storage due to less vessels in use and some set to retire. -- Reuters
(LONDON) The volume of refined oil products held on tankers at sea has fallen in recent weeks and is likely to put more pressure on the clean tanker market already struggling with supply worries, analysts said on Tuesday.
Last year a price play known as a contango, or cheaper prompt oil, had encouraged traders to store cargoes at sea with a view to selling them later at higher prices, helping to soak up available vessels.
But the contango on the oil futures market has narrowed in recent weeks, making it less attractive to hold stocks in floating storage.
Broker ICAP Shipping said on Tuesday the volume of clean oil products held on tankers at sea had fallen to 80.22 million barrels from 89.41 million barrels last month.
ICAP Shipping estimated that 102 tankers were storing clean oil products globally, down from 116 vessels on Jan 12.
'Floating storage coming off does signal that demand is picking up but it also adds supply growth to the market which will keep (freight) rates in check,' Tim Smith, a shipping analyst with consultants MSI, said. 'In the short term it will have a negative impact on the tanker market because the supply will have an immediate effect and the owners coming back with tonnage will need to get trade for their vessels.'
Another shipping analyst estimated around 107 tankers were storing oil products at the moment.
Broker SSY said separately on Monday the volume of clean oil products had dropped at the end of January to 72.67 million barrels or 102 tankers versus 85.63 million barrels or 122 vessels at end-December.
No official data exists for storage volumes at sea. Traders of middle distillates, such as gas oil for heating, said the amount held at sea still remained unexpectedly high given the cold weather in the Northern Hemisphere.
'It reflects to me a smaller change than we thought we would have seen,' a distillates trader said, referring to the data.
Traders said bulk of the clean products in storage at sea are middle distillates.
The volume of crude oil in storage has also fallen.
Broker E A Gibson estimated the total number of tankers employed for both clean products and crude oil at the end of January had fallen to 119 vessels from 141 at the end of 2009.
'Given the support to rates in 2009, storage will be a key factor in determining the market in 2010,' E A Gibson said.
SSY estimated that the volume of stored crude oil dropped to 25.64 million barrels or 14 vessels at the end of last month from 40.85 million barrels or 23 ships at the end of 2009.
SSY said 14 Very Large Crude Carriers (VLCCs) were holding crude at the end of January compared with 22 VLCCs and a smaller aframax tanker at the end of December.
A VLCC can store up to two million barrels of oil. Brokers estimated that the volume of crude oil in storage reached a peak in April last year at around 60 VLCCs.
Analysts have said the crude tanker market was less likely to be less affected if crude oil stocks come off storage due to less vessels in use and some set to retire. -- Reuters
BP Ships One VLCC Of N Sea Forties Crude To US -Trade
LONDON (Dow Jones)--Oil major BP PLC (BP) is moving one very large crude carrier of North Sea Forties crude to the U.S. Gulf of Mexico, traders and shipbrokers said Thursday.
The VLCC Front Opalia, chartered by BP, is sailing to Louisiana Offshore Oil Port in the Gulf after having been anchored off Southwold, England since early October for storage of Forties, they said. One VLCC typically holds 2 million barrels of crude oil.
The supertanker is expected to arrive in Loop Feb. 5, said a shipbroker.
"The arb [from the North Sea to the U.S.] is firmly shut at the moment based on current prices and freight rates, but they probably have better freight rates than most," said a trader.
This is the first VLCC loaded with Forties sailing to the U.S. since mid-December when traders shipped four VLCCs of Forties to the U.S. from the North Sea.
With the departure of the Front Opalia, only three VLCCs are now being employed to store Forties crude in the North Sea, the lowest level in 10 months, according to Dow Jones Newswires' record.
Traders expect Forties floating storage to stay low in the short term as narrow time spread in crude futures and surging freight rates have made storage uneconomic.
North Sea Crudes Shipping To The U.S.
Charterer VLCC Crude Departure Destination Freight
Date Rates
Shell Eliza Forties Feb 25 LOOP N.A.
Vitol Eagle Vienna Forties Mar 24 USG W50
Shell Front Shanghai Forties Apr 8 Galveston N.A.
Vitol Hero 1 Forties* Apr 11 Galveston N.A.
Shell Oliva Forties May 1 Galveston N.A.
Shell BW Luck Forties May 21 LOOP W37.5
BP Leander Forties May 31 LOOP W32.5
Conoco Bunga Kasturi Dua Ekofisk Jun 3 Chile N.A.
Conoco Abqaiq Forties Jul 21 Galveston N.A.
Koch Mercury Glory Forties Aug 8 Galveston N.A.
Vitol Bunga Kasturi Tiga Forties Dec 2 USG N.A.
Total Bunga Kasturi Empat Forties Dec 10 Houston N.A.
Total Maersk Noble Forties Dec 13 Galveston N.A.
Conoco Bunga Kasturi Dua Forties Dec 14 LOOP N.A.
BP Front Opalia Forties Jan 21 LOOP N.A.
*Shipment consists of 1.4 million barrels of Forties, 600,000 barrels of Brent
Source: Dow Jones Newswires
Forties Floating Storage In The North Sea
Charterer Vessel Location Start Loading Date
Date (FOB, Hound Point)
Arcadia Front Tina Southwold Jul 2 Jun 28-30
Vitol Flandre Southwold Nov 8 Nov 3-6
Morgan Stanley Ashna Rotterdam Jan 10 Jan 5-7
Source: Dow Jones Newswires
-By Sherry Su, Dow Jones Newswires; +44(0)20-7842-9329; sherry.su@dowjones.com
The VLCC Front Opalia, chartered by BP, is sailing to Louisiana Offshore Oil Port in the Gulf after having been anchored off Southwold, England since early October for storage of Forties, they said. One VLCC typically holds 2 million barrels of crude oil.
The supertanker is expected to arrive in Loop Feb. 5, said a shipbroker.
"The arb [from the North Sea to the U.S.] is firmly shut at the moment based on current prices and freight rates, but they probably have better freight rates than most," said a trader.
This is the first VLCC loaded with Forties sailing to the U.S. since mid-December when traders shipped four VLCCs of Forties to the U.S. from the North Sea.
With the departure of the Front Opalia, only three VLCCs are now being employed to store Forties crude in the North Sea, the lowest level in 10 months, according to Dow Jones Newswires' record.
Traders expect Forties floating storage to stay low in the short term as narrow time spread in crude futures and surging freight rates have made storage uneconomic.
North Sea Crudes Shipping To The U.S.
Charterer VLCC Crude Departure Destination Freight
Date Rates
Shell Eliza Forties Feb 25 LOOP N.A.
Vitol Eagle Vienna Forties Mar 24 USG W50
Shell Front Shanghai Forties Apr 8 Galveston N.A.
Vitol Hero 1 Forties* Apr 11 Galveston N.A.
Shell Oliva Forties May 1 Galveston N.A.
Shell BW Luck Forties May 21 LOOP W37.5
BP Leander Forties May 31 LOOP W32.5
Conoco Bunga Kasturi Dua Ekofisk Jun 3 Chile N.A.
Conoco Abqaiq Forties Jul 21 Galveston N.A.
Koch Mercury Glory Forties Aug 8 Galveston N.A.
Vitol Bunga Kasturi Tiga Forties Dec 2 USG N.A.
Total Bunga Kasturi Empat Forties Dec 10 Houston N.A.
Total Maersk Noble Forties Dec 13 Galveston N.A.
Conoco Bunga Kasturi Dua Forties Dec 14 LOOP N.A.
BP Front Opalia Forties Jan 21 LOOP N.A.
*Shipment consists of 1.4 million barrels of Forties, 600,000 barrels of Brent
Source: Dow Jones Newswires
Forties Floating Storage In The North Sea
Charterer Vessel Location Start Loading Date
Date (FOB, Hound Point)
Arcadia Front Tina Southwold Jul 2 Jun 28-30
Vitol Flandre Southwold Nov 8 Nov 3-6
Morgan Stanley Ashna Rotterdam Jan 10 Jan 5-7
Source: Dow Jones Newswires
-By Sherry Su, Dow Jones Newswires; +44(0)20-7842-9329; sherry.su@dowjones.com
Nigeria's Brass can export via VLCCs: sources
LONDON (Reuters) - Nigeria's Brass River crude can be exported via very large crude carriers (VLCCs) throughout the year, starting in April, after the completion of improvement works, market sources said on Thursday.
One VLCC can carry 2 million barrels of crude oil. Previously, the Brass terminal could handle ships up to half the size of the VLCC, or Suezmax vessels, during the wet season from April to October.
The sources said the restriction has now been lifted and VLCCs with up to 320,000 dead weight tonnes could use the Brass Terminal.
Brass River is operated by Italy's Eni. The company was not immediately available to comment.
"This is positive for sellers of Brass, particularly as some Indian buyers always ask for VLCCs, so Brass can now be entered into those tenders," one trader said.
"This is provided they are confident of reliable loading. Brass has suffered from attacks," the trader added.
Brass River is one of Nigeria's lightest quality grades and it is gasoline rich.
Despite the high quality, the crude was missed out from import tenders by Indian refiners and it was less popular among buyers than other Nigerian grades due to its shipping restrictions
India's state-refiners, such as Indian Oil Corp (IOC), have become the primary customers of the sellers of Nigerian crude as they buy millions of barrels every month via tenders.
Brass River also comes from onshore fields, which are more vulnerable to militant attacks than offshore fields.
The grade has been subject to delays due to pipeline sabotage before, which has cut out production.
Exports of the grade were around 125,000 barrels per day in January, according to preliminary loading programmes. This is well off output of nearly 200,000 bpd reached in 2005.
One VLCC can carry 2 million barrels of crude oil. Previously, the Brass terminal could handle ships up to half the size of the VLCC, or Suezmax vessels, during the wet season from April to October.
The sources said the restriction has now been lifted and VLCCs with up to 320,000 dead weight tonnes could use the Brass Terminal.
Brass River is operated by Italy's Eni. The company was not immediately available to comment.
"This is positive for sellers of Brass, particularly as some Indian buyers always ask for VLCCs, so Brass can now be entered into those tenders," one trader said.
"This is provided they are confident of reliable loading. Brass has suffered from attacks," the trader added.
Brass River is one of Nigeria's lightest quality grades and it is gasoline rich.
Despite the high quality, the crude was missed out from import tenders by Indian refiners and it was less popular among buyers than other Nigerian grades due to its shipping restrictions
India's state-refiners, such as Indian Oil Corp (IOC), have become the primary customers of the sellers of Nigerian crude as they buy millions of barrels every month via tenders.
Brass River also comes from onshore fields, which are more vulnerable to militant attacks than offshore fields.
The grade has been subject to delays due to pipeline sabotage before, which has cut out production.
Exports of the grade were around 125,000 barrels per day in January, according to preliminary loading programmes. This is well off output of nearly 200,000 bpd reached in 2005.
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