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

Tanker Trends

Libya Forces Tanker Away from Supplying Rival Government

Libya's recognized government said it forced a tanker from delivering fuel to its rival administration, diverting the vessel to its own territory by threatening an air attack on it.

Gypsy Moth Clause Takes Balanced Approach to Risk

A new BIMCO clause provides a simple, practical and commercial solution focusing on the basic obligations and responsibilities of owners and charterers when dealing with the Asian Gypsy Moth (AGM).

Batangas Port Sets Container Record

Batangas Container Terminal (BCT) set a new record in 2014 for containers handled, says its operator Asian Terminals, Inc. (ATI).  Port handled over 98,000 twenty-foot-equivalent

News

Revisions Proposed for Seaway Practices and Procedures

Under agreement with the U.S. Saint Lawrence Seaway Development Corporation, The St. Lawrence Seaway Management Corporation is proposing to amend the joint Practices

The 2nd Ballast Water Management Summit

Sign-up for this year’s most in-depth exchange of information and best venue for BWT stakeholders to network and meet their regulatory peers is underway.   Infocast’s

Britain to Ban Fracking in National Parks

Britain said on Monday it would ban fracking in national parks, reversing a policy announced last year, in a concession to the opposition Labour Party which had

Offshore Energy

World's Largest Ship Sparks Outrage

Jewish groups in the Netherlands and Britain have reacted with rage and despair at the arrival in Rotterdam of the world's biggest ship, the Pieter Schelte, named

Hofste, Montijn Nominated to Supervisory Board Fugro

Fugro N.V. announces that the Supervisory Board of Fugro nominates Mrs. P.H.M. Hofsté and Mrs. A.H. Montijn for appointment as members of the Supervisory Board

Technip Certified to EDGE Standard

Technip and EDGE Certified Foundation announce today that Technip in Brazil, in France and in Italy, including flexible pipe manufacturing plants in Brazil and France and Group’s headquarters,

 
 
Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Salvage Ship Repair Shipbuilding / Vessel Construction 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: 0.5651 sec (2 req/sec)