Dated Brent surged to an over three month high of forward Dated Brent plus 12.5 cents/b Thursday, as all four BFOE grades pushed higher on buying interest from Glencore and Petroineos.
Dated Brent was last higher on May 27, at Dated Brent plus 18.5 cents/b.
Forties values shot up 28 cents/b with bids across the curve at Dated Brent plus 20-30 cts/b Thursday.
Petroineos bid Dated Brent plus 20 cents/b for a September 18-October 1 cargo, excluding the September 23-25 period after the refiner lifted Vitol's September 23-25 offer at Dated Brent plus 10 cents/b, earlier in the window. The second half of the assessment range pushed higher on bids from Glencore and Petroineos at Dated Brent plus 30 cents/b, nearing the levels implied by the 43 cents/b backwardation between the September 12-16 to October 3-7 weeks in the North Sea CFD market.
Forties strengthened on news of further deferrals to the September and October loading programs due to problems last weekend at the Forties Pipeline System. Cargo loadings had already thinned during the second half of September and first two decades of October, due to full field maintenance of the 180,000-200,000 b/d Buzzard field, scheduled for September 17-October 21.
Forties F0914, F1001, F1002, F1003, F1004, F1006 and F1012 were reported deferred Thursday, while several more are anticipated. Equity holders were heard to be offered deferrals on their cargoes as a result of the Forties Pipeline System problems.
"[There are] a few more today, it's looking quite tight now," a trader said. "I wonder if barrels will get added at the front [of October]?" another said.
Forties strength saw quality premium adjusted Ekofisk set the whole of the 10-day forward to month ahead Dated Brent assessment range, despite the light-ends rich grade receiving a 5 cents/b boost from a back-end cargo bid by Glencore at Dated Brent plus 40 cents/b.
Ekofisk currently commands a quality premium of 35.29 cents/b for September-loading cargoes and 31.75 cents/b for October cargoes. The quality premium is payable by the buyer of a cash BFOE cargo to a seller that delivers Ekofisk against its cash BFOE short.
