LONDON: North Sea Forties crude price differentials weakened on Wednesday as a cargo loading in late February was offered lower and traded at a deeper discount to dated Brent.
Demand for Forties has been limited this week, traders have said, while there are signs of support for light, sweet North Sea grades such as Oseberg amid above-average refinery margins.
North Sea supply looks ample in March, loading programmes show. Output from 12 of the main crude streams is set to average 1.865 million barrels per day (bpd) in March, down 1.4 percent from February.
Overall loading volumes are higher month-on-month and the daily rate is only lower because March is a longer month.
FORTIES
Chevron sold to Exxon a Forties loading on Feb. 26-28 at dated minus 80 cents.
That was 30 cents lower than a similar offer on Tuesday.
Sellers offered a number of March-loading cargoes at higher differentials, without tempting buyers.
OSEBERG
Statoil bid for Oseberg loading on March 10-12 at dated Brent plus $1.35, up 10 cents from a bid on Tuesday.
The quality premium for March Oseberg cargoes is about 67 cents a barrel, meaning Forties is the cheapest benchmark grade on Wednesday and sets dated Brent.
NORTH SEA SWAPS
Click on for the latest contracts for difference.
Comments
Comments are closed for this article.