North Sea Struggles in Product-Driven Market

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  • Brent, Forties, Oseberg, Ekofisk and Troll (BFOET) crude exports making up the dated Brent pricing basket are up 7.5% on the year at 716,000 b/d.

  • Gasoil stockpiling and a flood of US crude have put downward pressure on the forward curve and left Brent forward prices in shallow contango.

  • Norway has ramped up exports of medium, sour Johan Sverdrup crude to a fresh high, buoyed by higher demand from Northwest Europe refiners.

North Sea trade is directionless, with sticky Brent levels hovering around $85 per barrel. The forward curve is still showing a shallow contango over the front three weeks, reflecting ample supply of light, sweet crude in Europe. As a result, there is little froth in the spot market, and differentials have barely moved from their previous month’s levels.

Oil Spot Markets, Oil Supply, Crude Oil, Diesel/Gasoil
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