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Eastern Demand for North Sea Crude Oil 'Tepid': Onyx Advisory

18th May 2018

(Bloomberg) - Crude differential in the North Sea have eased as buying fades in Asia and the outlook for Eastern demand in the coming months 'remains tepid' according to a report from Onyx Advisory.

  • As soon as the buying dissipates the Forties that usually send East has to clear locally
  • Differentials need to be at levels such as these seen at the end of February in order to be attractive to European refiners; notes volatility in Forties. NOTE: Forties Traded at +45c to Dated Brent on Feb. 18 and fell Dated -55c on Feb 28.
  • Chinas demand for Forties has tapered amid negative refinery margins.
  • The case for further imports from Europe unlikely to be as strong as it was earlier this year since the trade was solution with us 'seems imminent'.

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