W. Africa Crude-Spot trading limited by slew of tenders


LONDON, Jan 9 (Reuters) – Spot dealing was limited by pending tenders, though one European refinery purchased a cargo of Nigerian oil.

* State oil company Sonangol continued to offer two Dalia cargoes at dated minus 45 cents, down from 30 cents, and a Saturno at dated minus 55 cents, down from 40 cents.

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* While the company had already lowered its offers, some traders said differentials would need to fall further due to the strong dated Brent price.

* Brent was trading at its highest since May 2015 due to OPEC-led supply cuts and falling stocks worldwide.

* Around 12-13 February-loading cargoes were still available for sale, as well as some January-loading cargoes.

* Swedish refiner Preem purchased a cargo of February-loading Nigerian Escravos from Mercuria, traders said.

* The price was not immediately clear.

* Other spot trading was quiet due to pending tenders, but traders also said demand had slowed due to the high flat price.

* As a result, traders said differentials would need to fall in order to spur spot trading.

* Bonga has been offered recently at roughly $2 per barrel above dated Brent, and Qua Iboe at around dated plus $1.90.

* Indonesia’s Pertamina had issued a new tender to buy oil with bids due on January 10 and an award expected on January 12.

* Uruguay’s Ancap issued a tender to buy West African crude for March 6-10 delivery, closing on Jan. 11.

* Awards for a tender from India’s IOC to buy crude loading March 13-23 were expected on January 11.

* Fellow Indian refiner BPCL was tendering to buy West African or Asian crude loading Feb. 6-15 and 16-25. The first part closes on Jan. 9 and the second part on Jan. 11

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Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.


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