LONDON: North Sea Forties differentials fell on Tuesday to their lowest since mid August, under pressure from a lull in demand due to maintenance in the region and continued strong imports of US crude oil.
Ekofisk differentials have fallen to six-week lows, under pressure from an influx of competing light, sweet crudes from the United States, which has exported a record amount of oil globally, much of which has washed up in the North Sea market and depressed prices.
Nonetheless, flows of North Sea crude are shaping up to be healthy this month.
Floating storage in the North Sea has now all but disappeared, at roughly 1.6 million barrels, having dropped from a peak of nearly 16 million barrels in July.
Five VLCCs, equivalent to 10 million barrels of oil, look set to make their way to Asia this month carrying North Sea crude, while US refiner PES has booked the Tarbet Spirit to take Norwegian Grane crude to its 335,000-barrel-per-day refinery in Philadelphia.
Three are already underway, the Arion, the Olympic Leopard and the Zourva.
The Gener8 Neptune, which has been used almost exclusively for floating storage since July, is now en route to China, one broker said.
The Desimi, also used almost solely for floating storage for the past six months in the North Sea, is at Hound Point to load Forties for consumers in South Korea.
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