Vitol Group and TotalEnergies SE are hoovering up key North Sea crude supplies, part of the biggest spate of activity in almost two decades for barrels that help set global oil prices.
Over the past three days, Vitol, the world’s top independent oil trader, and French oil giant Total have snapped up 11 out of 17 cargoes that changed hands in a key pricing window run by Platts, a unit of S&P Global, according to traders and brokers.
The deals follow frenetic derivatives trading on Jan. 30, the most recent expiry period for Brent contracts, when both firms were very active.
While the precise reasons for the deals aren’t clear, dominant expiry buyers will often follow up by snapping up North Sea cargoes, tightening near-term supply and steepening the market’s price curve as cargoes get locked up.
Expiry sessions often set the tone for physical markets in the following month, as traders settle, or roll over, a host of associated contracts tied to actual barrels.
European oil markets have been unexpectedly strong so far this year, despite expectations for a global surplus. Supplies from Kazakhstan, a market that competes with North Sea oil, have severely disrupted, helping to tighten the availability of crude in the region, traders said.
Spokespeople for Vitol and Total declined to comment.
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