North Sea Crude-Forties weakens

Mon Sep 24, 2012 1:30pm EDT

Related Topics

* Forties slips to dated minus 25 cents
    * Ekofisk offered lower
    * Swaps ease

    LONDON, Sept 24 (Reuters) - North Sea Forties crude
differentials eased on Monday and other grades and swaps moved
lower, as economic worries pressured outright prices.
    While Forties was supported last week by production glitches
that have delayed cargoes, arbitrage to South Korea and healthy
refinery margins, traders say demand in Europe is seasonally
weak.
    
    FORTIES
    * Shell sold to Total an Oct. 13-15 Forties at dated minus
25 cents. That was down from a bid on Friday at dated plus 10
cents.
    
    EKOFISK
    * Vitol offered an Oct. 9-11 Ekofisk at dated plus 45 cents,
lower than price talks heard last week. 
   
    DE-ESCALATOR
    * Platts is raising the sulphur de-escalator applied to
Forties cargoes as of Oct. 1 to 35 cents a barrel per 0.1
percent weight of sulphur over the 0.6 percent weight standard,
up from the current value of 20 cents.
    The move effectively makes Forties cheaper for buyers at
higher sulphur levels, which are expected to kick in once the
Buzzard field re-starts in the second half of October. Buzzard
produces relatively sulfurous oil.
               
    LOADING DELAYS
    * Four October Forties cargoes have had their loading dates
moved back. One of the cargoes, F1016, scheduled to load on Oct.
29-31, is now planned for Nov. 2-4.
    * Details of no new deferrals emerged on Monday.
               
    SWAPS
    * Swaps moved into a contango at the front end, reflecting
the market's more bearish tone:
     1-5/10   Dec +46 
     8-12/10  Dec +53 
    15-19/10  Dec +53
    22-26/10  Dec +40
    29-02/11  Dec +27
     5-9/11   Dec +14 
       
   DATABASE
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click here

 (Reporting by Alex Lawler; editing by William Hardy)
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.