LONDON: North Sea Brent crude differentials rose to their highest in two weeks on Tuesday, after the closure of the Forties pipeline cut off supply of the region's largest oil stream.
The Forties Pipeline System, which handles around 450,000 barrels per day of crude, is likely to be closed for weeks while operator Ineos carries out repair work, a spokesman for the company said on Tuesday.
The pipeline had been operating at reduced capacity since Dec. 7 when a routine inspection revealed a small leak at a location onshore.
With supply of Forties effectively frozen for now, differentials for other key grades such as Brent and Ekofisk rose sharply, although activity in the daily trading window was fairly muted, given the lack of Forties cargoes.
No vessels have loaded at Hound Point since Dec. 6 when the VLCC Sara began taking on Forties. The ship departed on Dec. 9 bound for South Korea.
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