LONDON: North Sea Brent crude differentials held around their weakest in around 18 months on Wednesday, under pressure from an influx of supplies from the United States and Russia that countered strong export flows.
Almost 20 million barrels of North Sea crude, mostly Forties and Ekofisk, are currently en route to Asia, likely making May a record month for flows east.
But imports have also picked up. Some 13 million barrels of US crude and condensate, equivalent to around 113,000 barrels per day (bpd), have arrived in northwest Europe so far this year, compared with around 8.4 million barrels, or 73,000 bpd, in the same period last year.
In addition, around 225 million barrels, or 195,000 bpd, have arrived from Russia in the region so far this year, compared with around 162 million barrels, or around 141,000 bpd last year.
Regional supply is now meeting fierce competition from US and Russian imports for buyers at a time when up to 1.5 million bpd in refining capacity is about to go offline for maintenance.
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