Crude output to fall in March

Published on 15/02/2012 00:00

Crude oil output from the North Sea is set to fall in March for a third month this year due to maintenance work and natural declines.

Supply will average 2.18 million barrels per day in March, down 1.4 per cent from 2.21 million bpd the previous month.

The tightness in supply has prompted a rally in the North Sea market, which helps to set global oil prices. The rally has caught out some traders who expected supply of light, sweet crude to be ample in 2012.

“I’m surprised it has been as strong as it is,” said a North Sea trader.

“If you look at the balances, we should have been in a substantial sweet crude surplus.”

Output from the Statfjord stream in Norway and Denmark’s DUC is set to decline next month. Traders say there was maintenance taking place at Statfjord, where exports are scheduled to be significantly lower.