Thursday, September 19, 2019

North Sea Crude: Total, Gunvor Seek mid-September Cargoes

Posted by August 29, 2018

File Image: CREDIT DNV

North Sea crude differentials rose broadly on Wednesday after a flurry of bids in the daily trading window pushed the front of the swaps curve into backwardation for the first time in a month.

Total and Gunvor were actively seeking cargoes loading in mid-September, though neither reportedly took any cargoes on offer from floating storage.

There are more than 5 million barrels of Forties and Ekofisk held on tankers in the North Sea region, Reuters calculations show, but with the swaps curve moving into backwardation sellers might be encouraged to cut prices to avoid storing oil at a loss.

The first of the BFOET loading programmes for October emerged, with Oseberg and Troll. Supply of Oseberg will fall to 77,400 barrels per day (bpd) in October, from 100,000 bpd in September.

Supply of Troll will rise to 194,000 bpd in October from an originally planned 160,000 bpd the previous month.

The Forties and Ekofisk programmes were due on Thursday.

Reporting by Amanda Cooper

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