Prices ease on Saudi assurances

摘要

Reassurances from Saudi Arabia that it will make up for any loss of Iranian crude supply weighed on prices. Atlantic basin benchmark North Sea Dated was down by $1.11/bl to $122.55/bl in the week to 22 March, while US marker April WTI fell by 15￠/bl to $104.96/bl. Further pressure on North Sea Dated is coming from flagging demand for light grade Forties, one of the crudes that makes up the North Sea Dated basket and the one that most often sets the benchmark's price. Forties fell to a discount to North Sea Dated from a premium on lower demand from outside the region. VLCCs have been provisionally booked to take Forties to AsiaPacific, but no shipments have been finalised as of yet. Lower North Sea Dated values are helping to boost refining margins in Europe and could lead to higher refinery throughputs in the region.