LONDON: North Sea crude differentials edged higher on Tuesday as bidding for November-loading cargoes of Brent and Forties loading later this month emerged at a premium to the current price, suggesting demand next month will remain strong.
The Brent-Dubai spread, which can often dictate the pace of flows to Asia, is around its widest this year and while this has affected November flows of West African crudes east, it has not deterred North Sea exports.
A record nine supertankers loaded North Sea crude in October, carrying about 18 million barrels of oil, according to Reuters data and shipping sources.
Shell, which is already believed to own about 11 cargoes of November-loading North Sea crude, was again bidding for both Forties and Ekofisk as it prepares to send three VLCCs to China and Korea this month.
The backwardation in the dated Brent market has kept values for cargoes loading later this month and in December at a discount to those loading next week.
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