asr: couple of observations from these.
Hetco now has control of 30 percent of the Forties and Brent programme for February -- eight of the 25 February Forties cargoes, traders said, as well as two of the eight Brent cargoes loading next month.
Forties cargoes are typically of 600,000 barrels each.At around $98 per barrel, each Forties cargo is now -worth almost $60 million
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30% of February Forties/Brent shipment (10 cargo ships) => 100% is 33 Cargo ships for Feb month
- 600 K barrels/cargo ship => 33 cargo ships x 660 K = 22,000 K = 22,000,000 = 22 Million Barrels.
- since 1 OIL contract is 1000 barrels , each ship is 600 OIL contracts
- total Feb month cargo is 22,000 Contracts ....
- each ships has 600 k barrels => cositing $60 million , so total 33 ships for FEB costs $1.8 Billion
http://www.eia.doe.gov/energyexplained/index.cfm?page=oil_home#tab2
| Top Oil Producing Country | #1 — Russia (9,934,000 barrels/day) |
| Top Oil Consuming Country | #1 — United States (18,771,000 barrels/day) |
| Total World Oil Production | 84,365,095 barrels/day |
| Total World Petroleum Consumption | 84,249,000 barrels/day |
* Hetco keeps first eight February Forties cargoes http://www.hetco.com/energy_trading.php
* Also buys two of first three Brent cargoes - trade sources
* "Trading play" give Hetco significant influence in market
(Adds detail throughout)
LONDON, Jan 18 (Reuters) - Oil trader Hetco has taken control of the first eight North Sea Forties crude oil cargoes loading in February and two Brent cargoes, giving it significant influence over the spot market, trade sources said on Tuesday.
Brent and Forties are both part of the BFOE North Sea benchmark, which comprises Brent BRT-, Forties FOT-E, Oseberg OSE-E and Ekofisk EKO-E and acts as a basis for the settlement of ICE Brent crude futures LCOc1.
The BFOE benchmark is also used to value millions of barrels per day of physical crude oil in the Atlantic basin.
Hetco officials were not available for immediate comment. A Hetco trader, contacted by Reuters, declined to discuss the company's trading strategy.
Hetco is an independent trading company partly owned by and backed by U.S. integrated oil and gas company Hess Corp. (HES.N). It has been active in the North Sea oil market for several years, traders said.
Energy and metals market reporting agency Platts, part of publishers McGraw-Hill (MHP.N), which has for decades provided price assessments for North Sea crudes, has changed the basis for its benchmarks several times in an attempt to minimise the potential impact of supply squeezes.
North Sea oil traders described Hetco's acquisition of the February cargoes as the basis for a "trading play" and said that the company had been actively offering February Forties cargoes on Tuesday at prices above the last set of deals.
"If other companies cannot cover their positions, they are going to have to pay up," said one trader at a large U.S.-owned house, who declined to be identified.
Hetco now has control of 30 percent of the Forties and Brent programme for February -- eight of the 25 February Forties cargoes, traders said, as well as two of the eight Brent cargoes loading next month.
Forties cargoes are typically of 600,000 barrels each.
At around $98 per barrel, each Forties cargo is now worth almost $60 million. (Reporting by Christopher Johnson; editing by Anthony Barker)
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