LONDON: Forties crude differentials weakened on Tuesday as an overhang continued to weigh with at least three tankers storing crude anchored off Britain.
Despite the low differentials and favourable arbitrage economics, refiners in the Far East showed little interest in moping up the excess.
Only the usual two VLCCs of Forties were so far fixed in August to head to South Korea, according to Reuters data.
The fall in oil futures in recent days has helped prop up European refining margins but a global product oversupply means run cuts may still happen.
In particular, the surplus of gasoline and unseasonal high stocks in the US have weighed on light sweet grades that give a higher yield of the product.
WINDOW SUMMARY
Exxon bought a 600,000 barrel cargo of Forties from Shell at dated Brent minus 65 cents a barrel for Aug. 14-16 loading.
The deal was done 5 cents below Shell's offer on Monday.
There were two other offers for Forties cargoes.
BP offered one at dated Brent minus 55 cents a barrel loading Aug. 16-18 and Total the other at dated Brent minus 30 cents a barrel loading Aug. 23-25.
Gunvor offered a cargo of Ekofisk at dated Brent plus 35 cents a barrel loading Aug. 19-21.
Statoil offered a cargo of Brent at dated Brent minus 30 cents a barrel loading Aug. 28-30.
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