Shell is said to have acquired many of the Forties cargoes loading in early December through the forward BFOE market (Brent, Forties, Oseberg and Ekofisk – the four North Sea crudes), as well as a large amount of better quality Ekofisk; Shell already owned ~25% of Forties cargoes loading in December through its equity stakes in the oilfields.

In recent weeks, Shell reportedly has offered crude for loading via ship-to-ship transfer, usually perceived by traders as signaling an oversupplied market or a seller under pressure, from at least four vessels including a very large crude carrier.

Plentiful supply and low prices can encourage market players to snap up cargoes cheaply to sell them at a profit at a later date or ship them to Asia; Shell would have the option to simply absorb any unsold crude into its own refining system.

A shell spokesperson has declined to comment for “commercial reasons”.

Source: Seeking Alpha