Early Nov VLCC of North Sea Forties crude fixed for Korea: source

South Korean refiner SK Energy has bought one VLCC of Forties from the November loading program of UK North Sea grade Forties, a source close to the company said Tuesday.

The 270,000 mt Ingrid was reported by shipbrokers to be loading in the first half of November, Hound Point to South Korea, at an unknown freight rate.

This backs up what North Sea traders have been saying about an arbitrage fixture. While SK Energy are only taking this one cargo, traders say that other fixtures east could be made.

“I know that one is confirmed, but the other one is up in the air, there are a lot of rumors,” said one trader Monday.

The Ingrid was earlier this month reported on subjects to PetroIneos, a joint venture between PetroChina and Ineos, but the vessel failed subjects.

Shipping sources said that although SK was the ultimate buyer of the Forties, there may be another charterer responsible for delivering the cargo to SK.

Platts ship-tracking software cFlow shows the vessel’s current position as moored at the French port of Antifer.

The pick-up in buying interest from South Korea has been a factor in the recovery of the North Sea market seen over the last month.

Forties crude reached a four-month high of Dated Brent plus $0.195/barrel Monday, after the sustained weakness of many North Sea grades in Q3 this year.

Contracts for Difference, reflecting prompt physical crude prices versus further out monthly Cash BFOE contracts, has remained backwardated since October 9, the first time since mid-June it has not been in contango.
Source: Platts