North Sea Crude-Forties gains on tighter supplies

LONDON, Aug 16 (Reuters) - * Forties differentials rose due to the highest since early June on stronger demand and signs of tighter September supplies.

* One cargo of Forties loading in September, F0911, has been dropped from the loading programme after issues with the Kinneil processing plant limited flows, trade sources said. That reduces September loadings to 17 cargoes.

* There are signs that a build-up of Forties held on VLCCs off the UK coast is easing, potentially helping to support differentials. Two such vessels, Gener8 Ulysses and Orthis, have left for Rotterdam in recent days, according to shipping data.

* In a sign of a stronger market, the contango between the first- and second-month Brent futures contracts has narrowed. (LCOc1-LCOc2)

WINDOW SUMMARY

* Forties: Shell (LSE: RDSB.L - news) bid for a cargo loading on Sept. 10-16 at dated Brent minus 5 cents, up 10 cents from a trade on Monday.

* Ekofisk: Shell offered a Sept. 2-4 cargo at dated plus 30 cents, equal to dated minus 5 cents when allowing for the September quality premium of 35 cents.

* Brent: Unchanged after being bid at dated minus 15 cents. Brent is still therefore the cheapest benchmark grade. (Reporting by Alex Lawler; editing by Susan Thomas)