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OIL: High CPC and N Sea Prices Discourage Imports by Asian Refiners

OIL

Asian refiners may skip imports of Caspian CPC Blend, North Sea Forties and Johan Sverdrup as high prices have closed the arbitrage window, according to Bloomberg sources.

  • Higher prices have been supported by expectation of short supplies of CPC and Forties while Johan Sverdrup is boosted as a replacement for Middle East grades amid OPEC+ production cuts.
  • Forties loadings will drop from 181kb/d in July to 135kb/d in August amid planned maintenance and CPC exports could fall on Tengiz maintenance in August.
  • CPC Blend is the strongest in six months at a $1-$1.50/bbl discount to Dated Brent, compared to discounts of $3.20-$3.30 a month ago.
  • Johan Sverdrup and Forties premiums of more than $1/bbl to Dated Brent are considered too high to make arbitrage feasible.
  • Demand from European refineries is stable although below previous expectations. 
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Asian refiners may skip imports of Caspian CPC Blend, North Sea Forties and Johan Sverdrup as high prices have closed the arbitrage window, according to Bloomberg sources.

  • Higher prices have been supported by expectation of short supplies of CPC and Forties while Johan Sverdrup is boosted as a replacement for Middle East grades amid OPEC+ production cuts.
  • Forties loadings will drop from 181kb/d in July to 135kb/d in August amid planned maintenance and CPC exports could fall on Tengiz maintenance in August.
  • CPC Blend is the strongest in six months at a $1-$1.50/bbl discount to Dated Brent, compared to discounts of $3.20-$3.30 a month ago.
  • Johan Sverdrup and Forties premiums of more than $1/bbl to Dated Brent are considered too high to make arbitrage feasible.
  • Demand from European refineries is stable although below previous expectations.