(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'.