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North Sea Crude-Forties steadies after decline
September 26, 2012 / 4:56 PM / 5 years ago

North Sea Crude-Forties steadies after decline

* Forties steady at dated minus 30 cents
    * No deals in window
    * Swaps curve in contango at front

    LONDON, Sept 26 (Reuters) - North Sea Forties crude
differentials were unchanged on Wednesday as lacklustre demand
balanced lower than expected output.
    Refinery maintenance in Europe has weighed on demand, say
traders, although Forties production glitches, arbitrage to
South Korea and healthy refinery margins have been supportive
factors.
    
    FORTIES
    * There were no deals or bids in the window. Shell offered a
cargo at dated minus 20 cents - 10 cents above a deal on Tuesday
- and later withdrew the offer.
    
    DE-ESCALATOR
    * Oil price assessment service Platts said on Sept. 20 it
would revise the way it allows for sulphur in the price of
Forties - known as the de-escalator - from Oct. 1, raising the
compensation to buyers for higher sulphur levels in the crude.  
    The change is likely to support Forties and the timing has
irritated some traders. Platts says it seeks timing that is
neutral and fair to all. 

    LOADING DELAYS
    * No new deferrals emerged on Wednesday but cargo owners
continued to expect more delays. Four October Forties cargoes
have had their loading dates moved back due to lower than
expected output.
              
    SWAPS
    * Swaps moved into a steeper contango at the front end
before switching into backwardation:
     1-5/10  Dec +73 
     8-12/10 Dec +88
    15-19/10 Dec +75 
    22-26/10 Dec +60 
    29-02/11 Dec +45 
     5-9/11  Dec +30

   DATABASE
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 (Reporting by Alex Lawler; Editing by William Hardy)

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