North Sea Crude-Forties eases, VLCC options narrow

Joseph Keefe
Thursday, April 17, 2014

Forties trades at parity with dated Brent; Competing Libyan barrels returning to market. Refining margins under pressure as capacity ramps up.

North Sea Forties crude differentials eased on Thursday as the market remained sluggish ahead of the long Easter weekend and the window of opportunity for VLCC voyages to Asia narrowed.

Some traders said that the VLCC Phoenix Vanguard, which is currently off Fawley, UK, would still go to Hound Point to load Forties for South Korea around April 23. This would make it the last VLCC to load before Jetty 1 closes for two months of maintenance work.

With little chance of arbitraging barrels to Asia in May and June, traders expect the supply of competing crudes such as Urals to drive North Sea crude values in coming weeks.

OMV has fixed the 80,000 tonne Amalthea to ship Ekofisk from Teesport to Trieste, loading around April 26-27, according to shipping fixtures.

Mediterranean refiners have been buying North Sea crude in the last few weeks as they return from maintenance, because they need a substitute for missing Libyan barrels.

However, Libyan oil ports are slowly reopening, with a tanker loading at Hariga on Wednesday, the first time in nearly nine months. This is likely to choke off demand for North Sea crudes from Mediterranean buyers.

For refiners in northwest Europe, the picture is more complex. Refining margins have been relatively strong over the last 15 days at $5.80 a barrel, according to Reuters' data.

But as more refiners return from maintenance, margins will come under pressure. Analysts at JBC Energy estimate that runs will increase by 320,000 barrels-per-day month-on-month, increasing demand for crude feedstock.

"However the resulting higher product output, coupled with high Russian and U.S. product exports, are likely to negatively weigh on margins and we see May runs at around 9.7 million bpd, with the risks skewed to the downside," they said in a note.

FORTIES


* Chevron sold a Forties cargo loading on May 4-6 to Shell at parity with dated Brent.

* This was below the last trade, which came on Tuesday at dated plus 15 cents for May 7-10 Forties.

Reporting by Claire Milhench

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Tanker Trends

Bahri Orders VLCC Newbuilds

Bahri ordered five newbuild very large crude carriers from Hyundai Samho Heavy Industries   The National Shipping Company of Saudi Arabia (Bahri) today signed

Tankers Switch to Digital Navigation

In July 2015 international regulation requires all tankers to be compliant with IMO rules for the use of ECDIS and ENCs. As many shipping companies start planning

Tanker Demand Picks-up in Canada

Canada’s role in the oil industry has changed dramatically in recent years driven by synthetic crude oil production in the oil sands of Alberta.   New plans for Energy East,

Finance

AAPA Applauds Senate Passage of Trade Promotion Legislation

The American Association of Port Authorities (AAPA) applauded Senate passage over the past weekend of the Bipartisan Congressional Trade Priorities and Accountability Act of 2015 (TPA-2015),

Port of Duluth Intermodal Project Underway

The U.S. Department of Transportation’s Maritime Administrator, Chip Jaenichen, today joined Senators Amy Klobuchar and Al Franken, Congressman Rick Nolan, Duluth Mayor Don Ness,

Chile Exporters Fret as Customs Strike Continues

A customs strike in Chile that began last week has started to affect exports and imports, although miners in the top copper producer said this week they have not yet been significantly impacted.

Energy

Scandlines Orders Ferry Battery System

Corvus Energy announces the signing of marine Energy Storage System (ESS) contract with Scandlines Denmark ApS; world’s largest battery hybrid electric fleet orders additional 2.

Philippine, Vietnamese Troops Together on Disputed Island

Vietnamese and Philippine troops played soccer and sang karaoke on a South China Sea island on Wednesday in a sign of the growing security ties between the two

New MD for Glander Int'l Bunkering (India)

Glander International Bunkering is proud to announce that Ajay Menon has been appointed as the Managing Director of Glander International Bunkering (India) Private Limited.

Offshore Energy

First Damen Twin Axe for Offshore O&G

To develop its large fleet, Groen Offshore, Guard & Support has selected the first Damen Twin Axe Fast Crew Supplier 2610 to be customised with Offshore Oil & Gas standby capabilities.

Hoegh LNG Bags FSRU Deal in Chile

Oslo-based Höegh LNG said it has signed an Floating Storage and Regasification Unit (FSRU)contract with Chilean Octopus LNG for the Penco-Lirquén LNG import terminal to be located in Concepción Bay,

Former Petrobras Exec Sentenced to 5 Years Jail

A Brazilian judge sentenced a former international director at state-run oil firm Petroleo Brasileiro SA to five years in prison for money laundering on Tuesday,

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pod Propulsion Port Authority Salvage Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1210 sec (8 req/sec)