Buzzard Oilfield News

Brent crude fell towards $102 a barrel on Tuesday on concerns of slowing oil demand growth due to weak economic recoveries in China and Europe, although new unrest in OPEC oil producer Libya kept losses in check. Euro zone manufacturing growth slowed slightly more than initially thought in August, while growth in China's factory sector slipped to a three-month low last month, adding to concerns about oil demand. Brent prices have trended higher since mid-August as speculators have come back into the market following a drop of nearly $15 to around $101 a barrel over the previous two months. "Still, the economic recovery in Europe and especially in China is not strong, and we've seen no supply shortages in Iraq," said Ken Hasegawa, a commodity sales manager at Newedge Japan.

North Sea crude premiums held strong on Tuesday, supported by solid demand from Shell, and traders said the market for June-loading cargos could remain strong due to tighter supply. Loading programmes for North Sea crude in June have started to be issued this week and traders say summer maintenance work at oilfields and other infrastructure could tighten supplies. "That could keep differentials supported," said one. Output at the Buzzard oilfield appears to have recovered after a cutback last month, which trimmed supply of Forties and led to a spate of loading delays for cargoes in April and May. The field was pumping at normal rate of around 200,000 barrels per day on Tuesday, an industry source said.

North Sea Forties crude differentials rose on Friday, supported by the ongoing supply cut from Nexen's Buzzard field, which has delayed loading of a number of April and May cargos. Nexen said this week that output from the Buzzard oilfield had been cut due to five days of planned maintenance and construction work. The production dip has triggered a raft of loading delays, including two cross-month deferrals of cargoes. Production from the Huntington field, also in the U.K. North Sea, has been stopped since April 12 because of work on its floating production and storage unit. A full restart is expected between April 30 and May 7. The return of supplies from Libya has also been slow to emerge, despite a deal between Tripoli and rebels in the country's east earlier this month.

North Sea Forties crude differentials firmed on Tuesday as traders eyed two potential VLCC shipments to Asia, though gains were capped as the first cargo of Libyan crude was set to load since a deal with rebels to reopen ports. Traders have been watching the progress of two VLCCs - the BW Utah and the Phoenix Vanguard, both of which have been in the frame for arbitrage shipments of Forties to South Korea. The BW Utah left Hound Point on Monday bound for Rotterdam, according to traders and ship tracking data.