North Sea Crude-Brent contango widens, Buzzard work to end soon

LONDON, Oct (HKSE: 3366-OL.HK - news) 21 (Reuters) - North Sea Ekofisk and Brent crude differentials weakened on Friday and the nearby Brent futures spread widened further, reflecting ample supplies.

An overhang of Nigerian crude, higher freight costs and limited Asian demand are weighing on the market, traders said. In a sign of strong prompt supplies, the contango between the first- and second-month Brent contracts (LCOc1-LCOc2) widened to 92 cents, the most since Sept. 30.

BUZZARD FIELD

* The Buzzard oilfield, the largest contributing to the Forties stream, is set to return to production soon following a planned shutdown. The work should be finished around Oct. 22, based on information given earlier by trade sources.

"I heard the work was on schedule," a trade source said on Friday.

A spokeswoman for Nexen (KSE: 005720.KS - news) , the field's operator, declined to comment on when the restart will take place.

WINDOW SUMMARY

* Brent: Petroineos offered a cargo of Brent on a ship-to-ship (STS) basis from the Stena Arctica at dated Brent minus 50 cents a barrel loading Nov. 14-16, down 10 cents from an offer the previous day.

* Ekofisk: Eni (LSE: 0N9S.L - news) sold to Vitol a cargo of Ekofisk loading Nov. 15-17 at dated Brent minus 20 cents, 5 cents lower than an offer on Thursday.

* Brent therefore remains the cheapest benchmark grade and sets the value of dated Brent. (Reporting by Alex Lawler; Editing by Ruth Pitchford)