LONDON: North Sea Forties crude differentials rose on Friday, supported by stronger refining margins.
The average plant cracking Brent in Rotterdam stood to make around $8 a barrel on Friday, according to Reuters models, almost double the amount they would have made just two months ago and close to the highest this year.
Refinery margins in Europe have been supported by stronger gasoline due to export demand from West Africa, while the outright price of Brent futures has fallen to a two year low.
But Forties differentials remain in negative territory as the market is still well supplied. Competing barrels of light crude from Libya are returning to the market.
Traders said that activity from the Ras Lanuf oil terminal in Libya after around a month of no vessels departing indicated that exports would likely soon increase further.
The Aframax tanker Aegean Pride left Ras Lanuf on Sept. 11 with a destination of Genoa in Italy.
The Buzzard field, which produces Forties, continued to operate on Friday, trading sources said. It has been hit by a number of stoppages since returning from maintenance in late August.
FORTIES:
Shell sold Total a cargo of Forties loading Oct. 1-3 at dated Brent minus 25 cents.
That was 5 cents firmer than a bid from the French major for a similar cargo Thursday, and up from a deal on Thursday at dated Brent minus 60 cents for slightly earlier loading.
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