November 8, 2012 / 5:08 PM / 5 years ago

North Sea Crude-Forties rises, Statoil buys

* Forties rises to dated plus 65 cents
    * Shell still bidding after buying 5 cargoes
    * Swaps in backwardation

    LONDON, Nov 8 (Reuters) - North Sea Forties crude
differentials climbed on Thursday, against a backdrop of higher
refinery demand in Europe after maintenance turnarounds. 
    As well as European demand, traders expect some oil to be
shipped to South Korea, an arbitrage that tends to support
Forties differentials and the wider Brent market.
    Forties output is expected to rise in December after the
restart of the Buzzard oilfield, although analysts say
uncertainty on the supply front remains supportive of prices in
the near term. 
    
    FORTIES BFO-FOT
    * Vitol sold to Statoil a Nov. 29-Dec. 1 Forties at dated
plus 65 cents. That was in line with a similar Statoil bid on
Wednesday, and was up from the average of Wednesday's bids at
dated plus 45 cents.
    * Shell, the buyer of five cargoes in the window already
this week, continued to bid and was looking to pay dated plus 50
cents on Thursday.
    * The market expects some of the oil bought by Shell to be
shipped to South Korea, a trader said earlier this week.
    Shipment of Forties to South Korea has been encouraged this
year by a free trade agreement, and it tends to support prices
in the North Sea market as well as Brent swaps and timespreads. 

    SWAPS 
    * The swaps curve remained in its familiar backwardation,
showing a premium on prompt supplies: 
    12-16/11 Jan +55
    19-23/11 Jan +50    
    26-30/11 Jan +47     
     3-7/12  Jan +34     
    10-14/12 Jan +19       
    17-21/12 Jan +4  
    
    DATABASE
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click here

 (Reporting by Alex Lawler; editing by Keiron Henderson)

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