Will Cunliffe
Research Analyst, The Officials
North Sea siesta
Dated Brent is weak at the knees, gasoline cracks are zooming in part because Europe's FCCs are coming under serious pressure and the US eco
Dated Brent is weak at the knees, gasoline cracks are zooming in part because Europe's FCCs are coming under serious pressure and the US economy is staying resilient in the face of higher inflation.
Flat price was very flat throughout the morning but took a turn in the afternoon as it climbed 92c/bbl, reaching the close at $74.48/bbl. It posted its first daily gain since 19 June. The North Sea window was weak at the knees for another session, as the same band of players came out again. Exxon offered 22-26 Jul Midland at Dated +$0.95. BP offered 15-17 Jul Brent yet again but didn’t lower its original offer of 30c under Dated. Unipec returned to offer 12-14 Jul Forties, though only lowered it once to Dated -60c. Shell was overly keen to get cracking early, seemingly accidentally offering an Ekofisk cargo around noon in London before withdrawing. As well as Brent, BP offered Johan Sverdrup for 17-20 Jul at Dated +$2.40. As the Brent and Forties curves weren’t budged by those half-hearted offers, the physical differential is barely changed at -79c.
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