North Sea Traders Eye VLCCs to Asia, Libya Caps

Posted by Eric Haun
Tuesday, April 15, 2014
Fawley refinery (photo courtesy Exxon Mobil)

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. The Phoenix Vanguard is currently sailing from Rotterdam to the Fawley refinery, but is only partially loaded.

Traders said it may stop there before continuing to Hound Point, then Asia.

From May, no VLCCs will be able to sail from Hound Point as Jetty 1 will be closed for maintenance, so traders have only two more weeks in which to get them away.

Traders were also watching the stuttering return of supplies from Libya.

A tanker is due to load 1 million barrels of crude on Tuesday from Libya's reopened Hariga port, the National Oil Corp. said, its first export shipment since a deal to end months of closures at its main oil terminals.

Higher exports from Libya could reduce demand for North Sea oil from refineries in the Mediterranean refiners, which are beginning to emerge from maintenance, but many ports in the east of the country remain closed.

The May Brent futures contract was also set to expire later on Tuesday. The contango between May and June widened sharply on Tuesday to around 37 cents a barrel from near parity on Monday.

Tighter supplies due to North Sea maintenance over the summer is expected to tighten the market.

Forties
Total sold to Gunvor a cargo of Forties for loading May 7-10 at dated Brent plus 15 cents, traders said. Gunvor had bid for the same loading dates on Monday at dated Brent plus 5 cents.

The previous trade was on Monday, when Chevron sold a Forties cargo loading on May 2-4 to Shell at dated Brent plus 5 cents.

Output from the Buzzard oilfield accounted for 49 percent of the Forties crude stream in the week April 7-13. This was up from 44 percent in the week March 31-April 6, according to data on the Forties Pipeline System website.

(Reporting by David Sheppard; Editing by Mark Potter)

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

Ports

India to Appoint Coastal Shipping Consultant

As part of Narendra Modi government plan to promote coastal shipping, India is all set to appoint a consultancy firm to assist the Shipping Ministry.    The

Long Beach Harbor Tour Season

Long Beach Port is once again giving tourists opportunity to enjoy a rare view of port operations on a free Port of Long Beach harbor tour. The organizers are

Mariners Transiting Delaware River Cautioned

The Captain of the Port (COTP) Delaware Bay is notifying mariners that Upper Delaware River lighted buoy 33 (LLNR 3875) and Upper Delaware River lighted buoy

Energy

Eniram to Provide Boil-off Management for LNG Sector

Eniram Limited, the Finnish provider of energy management technology and data analytic services to the shipping industry, announced that it is releasing an onboard

Johan Sverdrup Contract to "Pioneering Spirit"

Statoil has signed a contract with Allseas for installation of three platform topsides on the Johan Sverdrup field.   The vessel will be installing the topsides for the drilling,

Mitsubishi Bags Fourth LPG Carrier Order from Astomos

Tokyo-based Astomos Energy Corp has placed an order today with Mitsubishi Heavy Industries (MHI) for a very large liquefied petroleum gas (LPG) carrier.     The 83,

News

Haven Marine Bags Back To Back Dockings

Despite a slow start to the year, Haven Marine Services reports it is now seeing a change in fortunes with two dockings for Svitzer in quick succession, with one

Eniram to Provide Boil-off Management for LNG Sector

Eniram Limited, the Finnish provider of energy management technology and data analytic services to the shipping industry, announced that it is releasing an onboard

Liebherr Reports Record Year for Offshore Cranes

With 87 units delivered in 2014, Liebherr offshore cranes achieved a new per year delivery record, more than doubling its delivery numbers from 2012. And according to Liebherr,

Offshore Energy

Liebherr Reports Record Year for Offshore Cranes

With 87 units delivered in 2014, Liebherr offshore cranes achieved a new per year delivery record, more than doubling its delivery numbers from 2012. And according to Liebherr,

Johan Sverdrup Contract to "Pioneering Spirit"

Statoil has signed a contract with Allseas for installation of three platform topsides on the Johan Sverdrup field.   The vessel will be installing the topsides for the drilling,

1st lifejacket for Working at heights

The first lifejacket custom-designed specifically for offshore personnel carrying out rope access or work at height has been developed by Survitec Group, the

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Navigation Port Authority Ship Electronics Ship Repair Sonar
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2829 sec (4 req/sec)