Crude oil from Norway’s Johan Sverdrup oilfield is heading to Asia once again, following a several months long break, because of a closed arbitrage window and a strong demand from the European market.
Sverdrup crude was popular in Asia, when business started in 2019. In later years the crude has sold more in Europe as European sanctions on Russia have created a gap in the market following the Russian invasion of Ukraine.
According to top executives from Aker BP, a partner in the Sverdrup field, the cooperation with Asia will be positive for the market value of the crude. The demand for Sverdrup is expected to be rising in the following months.
The Asian buyers are interested in the Norwegian crude as the price is competitive when comparing it to oil from other countries such as Brazil, Oman and Angola. Furthermore, the low sulfur content of the crude makes it easier to refine than it is from other suppliers.
Source: Reuters
