LONDON: North Sea crude oil differentials fell on Wednesday, leaving Forties at its lowest since early May, as owners of physical barrels were unable to find any takers.
Total did not offer any cargoes for loading via ship-to-ship transfer, which it has done most days so far this month.
Traders tend to view STS loadings as a sign of an oversupplied market and Total's apparent inability to sell its barrels has added to that perception, trading sources said.
Reuters shipping data showed Shell has tentatively booked another VLCC, the Orthis, to load Forties in July, but two traders said they believed this cargo would likely be for fuel oil, rather than crude.
WINDOW SUMMARY
Statoil offered a cargo of Forties for loading July 6-8 at a discount of 60 cents to dated Brent.
BP offered a cargo of Forties for loading July 11-13 at 55 cents below the dated price.
Shell withdrew an offer for a cargo of Forties at 85 cents below the dated price for loading July 5-7.
Statoil offered a cargo of Ekofisk at 10 cents below dated Brent for loading July 8-10.
Total offered a cargo of Ekofisk for loading July 13-15 at 20 cents above dated Brent.
Forties is the lowest-priced crude and therefore determines the price of dated Brent.
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