Market Update
The North Sea Dated Brent physical differential saw great support at the start of March, rising from 0c on 28 Feb to 85c/bbl on 04 Mar, this time last week. Since then, there the differential has been implied quite stably, dropping slightly to 83c/bbl on 10 Mar. It has been very quiet in the physical windows, with a decent offering of Midland and Sverdrup on 10 Mar but no trades, and just Phillips bidding and withdrawing on 07 Mar. The front futures fly (May/Jun/Jul) has recovered to positives, at 3c/bbl on 10 Mar, showing the physical and futures markets have less divergence than we saw a couple of weeks ago. There is better strength, or more stability, in the physical market and the front spreads quite evenly with a backwardation of over 50c/bbl in the front spread (May/Jun’25).
