North Sea Crude-Forties weakens on overhang, poor margins

LONDON, Aug 2 (Reuters) -

* Forties crude differentials weakened on Tuesday as an overhang continued to weigh with at least three tankers storing crude anchored off Britain.

* Despite the low differentials and favourable arbitrage economics, refiners in the Far East (Kuala Lumpur: 5029.KL - news) showed little interest in moping up the excess. Only the usual two VLCCs of Forties were so far fixed in August to head to South Korea, according to Reuters data.

* The fall in oil futures in recent days has helped prop up European refining margins but a global product oversupply means run cuts may still happen.

* In particular, the surplus of gasoline and unseasonal high stocks in the U.S (Other OTC: UBGXF - news) . have weighed on light sweet grades that give a higher yield of the product.

WINDOW SUMMARY

* Exxon bought a 600,000 barrel cargo of Forties from Shell (LSE: RDSB.L - news) at dated Brent minus 65 cents a barrel for Aug. 14-16 loading. The deal was done 5 cents below Shell's offer on Monday.

* There were two other offers for Forties cargoes. BP offered one at dated Brent minus 55 cents a barrel loading Aug. 16-18 and Total (LSE: 524773.L - news) the other at dated Brent minus 30 cents a barrel loading Aug. 23-25.

* Gunvor offered a cargo of Ekofisk at dated Brent plus 35 cents a barrel loading Aug. 19-21.

* Statoil (LSE: 0M2Z.L - news) offered a cargo of Brent at dated Brent minus 30 cents a barrel loading Aug. 28-30. (Reporting by Julia Payne; Editing by David Evans)