LONDON: North Sea Forties crude price differentials firmed on Friday as March cargoes continued to clear, with traders pointing to strong refining margins and firmer Urals, which often sets the floor for Forties.
Over the past five days a Rotterdam-based refiner cracking Brent has made a daily average of almost $9 a barrel, according to Reuters' models. Product cracks remain robust, though one trader pointed out that this was mainly because of cheap crude feedstock rather than any big uplift in consumer demand.
Meanwhile, bad weather has led to loading delays in the Mediterranean market, pushing up the price of Russian Urals. Because Urals is a sour grade, when it moves higher, Forties often rises as well.
No fresh VLCC fixtures have been sighted and traders believe that the contango needs to open further to encourage more storage.
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