LONDON: Forties crude differentials edged higher in an otherwise steady North Sea market that has seen cargoes for prompt loading come under pressure this week.
The contango in the physical North Sea market has widened since the start of the week, as rates for prompt-loading barrels have fallen to two-week lows from their highest in nearly nine months, on account of a persistently large amount of surplus oil in the region, traders said.
Total, which has been snapping up cargoes of Forties and Ekofisk in particular this month, bid for barrels loading in late June, but met with no sellers, while Mercuria, which has chartered a VLCC to sail to Asia next month, offered the same grade, but found no buyers.
Mercuria has booked the Maran Taurus to load Forties next week, while Total has booked the aframax Petrovsk to load an as-yet unspecified crude to go east to the US market.
WINDOW SUMMARY
Mercuria offered a cargo of Forties for loading June 16-18 at parity with dated Brent.
Total bid for one cargo of Forties for loading June 21-23 at a premium of 5 cents to dated Brent and for a second for loading June 8-12 at the same price.
BP withdrew an offer for Forties for loading June 18-20 at a premium of 10 cents to dated Brent.
Total withdrew a bid for a cargo of Forties June 18-20 at a discount of 5 cents to the dated price.
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