LONDON: North Sea Forties crude price differentials held at a steep discount to dated Brent on Thursday, pressured by ample supplies and weak refining demand in Europe.
Unsold West African cargoes plus more plentiful supplies in the Mediterranean are increasing buyer choice and putting downward pressure on North Sea crude, say traders, adding to the impact of refinery maintenance limiting crude demand.
"Those barrels are there so buyers are relaxed, and when buyers are relaxed the sellers have to drop their numbers or keep the barrels," said a North Sea trader.
Trafigura has bought three Forties cargoes this week for early April loading. Traders have said Trafigura may be planning to load the cargoes into a VLCC for South Korea. No concrete evidence of a shipment has emerged yet.
The North Sea's light, sweet crude grades are also coming under downward pressure, traders said.
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