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North Sea Crude-October supply to rise, arb supports
September 13, 2012 / 5:26 PM / 5 years ago

North Sea Crude-October supply to rise, arb supports

* Forties steady, one offer no bids
    * Two shipments fixed to South Korea
    * Swaps curve in contango at front

    LONDON, Sept 13 (Reuters) - Oil companies have arranged to
ship October-loading Forties crude to South Korea, trading and
shipping sources said on Thursday, potentially lending support
to prices.   
    There was no sign of rising prices yet though, with only one
Forties seller in the Platts window on Thursday and no bidders.
The full set of loading programmes pointed to a 25 percent rise
in North Sea supply in October.
    Seasonal maintenance is getting under way at European
refineries, traders have said, weighing on demand in the
region.
    FORTIES, EKOFISK
    * Once again, differentials were unchanged and no deals were
concluded in the Platts window. 
    * The sole Forties offer came from BP, which offered its
Oct. 3-5 Forties at dated plus 17 cents, 1 cent higher than it
offered on Wednesday. BP withdrew the offer, which met with no
buying interest in the window. 
    * Phillips 66 offered an Oct. 3-5 Ekofisk at dated plus 50
cents, above price talks most recently heard around dated plus
20 cents. This offer was also withdrawn.

    NORTH SEA SUPPLY
    * North Sea crude output from 12 major production streams is
expected to rise by 25 percent in October from September,
according to loading programmes, as maintenance is completed.
 
    
    SOUTH KOREA ARBITRAGE
    * Two shipping fixtures reported on Thursday showed Very
Large Crude Carriers, which each hold 2 million barrels, fixed
to load at Hound Point on Oct. 10, bound for South Korea. Hound
Point is where Forties crude is loaded. 
    The vessels were fixed on behalf of Total and by Royal Dutch
Shell, the trading and shipping sources said. 
    
    SWAPS
    * The swaps curve remained in contango at the front end: 
    17-21/9  Nov +27 
    24-28/9  Nov +32
    1-5/10   Dec +67
    8-12/10  Dec +58
    15-19/10 Dec +46 
    22-26/10 Dec +34 

    DATABASE
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click here

 (Reporting by Alex Lawler; editing by James Jukwey)

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