Total buys a cargo of North Sea Forties from Shell
LONDON: Total SA bought a cargo of North Sea Forties crude from Royal Dutch Shell. Production of the four grades that make up Dated Brent will drop 8 percent next month, Bloomberg reported .
Total said it bought a Dec. 22 to Dec. 24 shipment at $1 below the cash cost of North Sea oil in February. Occidental Petroleum Corp.'s Phibro unit bid for a consignment without attracting any sellers, according to traders involved in the transactions. Reported North Sea market activity typically occurs during the Platts' trading window that ends daily at 4:30 p.m. in London. Prior to the window, Forties crude loading from 10 to 21 days in the future cost 30 cents less than Dated Brent, unchanged from the previous day. Brent crude for January settlement traded at $90.30 a barrel on the London-based ICE Futures Europe exchange at the close of the window, down from $90.67 a barrel at the same time yesterday. The February contract traded at $90.44 a barrel. The price spread between the two nearest-term contracts narrowed to 14 cents from 16 cents yesterday.
Shipments of the four North Sea grades that compose Dated Brent will decline by 8 percent in January, according to loading programs released today. Exports will total 1.11 million barrels a day, down from 1.21 million a day this month.
Brent exports will total 4.2 million barrels in January, or 135,484 a day. Forties shipments will be 15 million barrels, or 483,871 a day. There will be 4.2 million barrels, or 135,484 a day of Oseberg, and about 11.15 million barrels, or 359,677 a day of Ekofisk. Daily exports of North Sea Statfjord crude are scheduled to decline 14 percent to 165,484 barrels a day in January, according to its loading program. Gullfaks shipments will fall 12.2 percent to 193,548 barrels. PT Pertamina, Indonesia's state-owned oil company, is seeking to buy lowsulfur crude oil for delivery in February, according to a document obtained by Bloomberg News. The company also purchased one cargo a month of Nigeria's Qua Iboe crude for delivery from February to April at its Cilicap refinery, said an official who asked to remain unidentified, citing company policy. Indian Oil Corp., the nation's biggest refiner, issued a tender to buy crude oil for loading in February, according to documents received.
Moreover, Wall Street Journal reported oil prices under $80 a barrel will make it difficult to invest in some production projects needed to meet global energy demand, Total SA (TOT, FP.FR) Chief Executive Christophe de Margerie said Friday. -PB News