What’s going on here?
On March 20, 2025, Shell and ExxonMobil are competing fiercely in North Sea oil pricing, with Shell trying to gain an edge by offering Forties crude at lower prices.
What does this mean?
In a strategic move, Shell has lowered its price offerings on Forties crude compared to ExxonMobil for select April delivery dates. While ExxonMobil bid higher with an April 4-8 cargo priced at dated Brent plus 55 cents, Shell offered two other April slots at smaller differentials, though without immediate buyers. This tactic highlights Shell’s approach to entice buyers by underpricing its rival amid decreasing differentials. Meanwhile, ExxonMobil’s offer of dated Brent plus $1.65 for an April cargo in CIF Rotterdam suggests the company’s strategic positioning despite high bids. Shell’s pricing on WTI Midland at a lower converted rate than recent trades further underscores its versatile pricing approach.
Why should I care?
For markets: Adjusting strategies in the oil ocean.
Shell’s competitive pricing strategy could disrupt current oil market dynamics, possibly leading other companies to reevaluate their pricing and bidding tactics as they vie for North Sea crude.
The bigger picture: Riding the waves of supply and demand.
The fluctuating pricing strategies by major firms like Shell and ExxonMobil may reflect larger trends in global oil supply and demand, influencing long-term contract negotiations and impacting market stability worldwide.