LONDON: Forties differentials fell on Thursday to their lowest level since early May, as an overhang of unwanted crude continued to drag on the market.
Total once again offered barrels from the Maran Thetis via ship-to-ship transfer (STS) but was unable to find a buyer.
The French port and oil refinery strikes are mostly over, following nearly four weeks of disruptions, which should theoretically provide some support for crude diffs.
Reuters trade flows data shows no North Sea crude has discharged in France since May 20.
There are, as yet, no fixtures for July-loading cargoes of Forties bound for Asia. So far this month, some 6 million barrels have loaded and sailed, with another 2 million due to load this week onto the VLCC Sara, chartered by Shell.
Of the 22 million barrels of Forties that have loaded and sailed for Asia this year, Shell has moved 14 million barrels. At this point last year, Shell had moved just 2 million out of the 20 million of Forties that sailed to Asia.
WINDOW SUMMARY:
Total offered a cargo of Forties for loading Jun 26-30 via STS at Scapa Flow from the Maran Thetis at a discount of $1.55 to the August cash BFOE price.
Total offered a second cargo of Forties for loading July 1-5 via STS from Scapa Flow from the Maran Thetis at a discount of $1.40 to the August cash BFOE price.
Total offered a cargo of Ekofisk for loading July 13-15 at a premium of 25 cents to dated Brent. The grade had traded on Thursday at dated Brent minus 20 cents. (QP 60 cents)
Statoil withdrew an offer for a cargo of Forties for loading July 3-5 at a discount of 45 cents to dated Brent.
Ekofisk remains the lowest-priced crude and therefore set the price of dated Brent.
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