W. Africa Crude-IOC buys oil, other demand slow

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LONDON, March 28 – India’s IOC booked at least three million barrels, while Angola’s Sonangol had cut its offer levels.

* Demand in the east had slowed, traders said, limiting the outlets for heavy and medium crudes.

* India’s IOC awarded its tender to Shell and Chevron, the former getting a VLCC including one cargo of CLOV.

* But other demand in the east was soft, prompting China’s Unipec to offer cargoes including Ghanaian Jubilee, Cameroonian Lokele and Angolan Saxi and Plutonio.

* Though at least half the May-loading Angolan programme had already traded, the soft demand prompted calls for lower differentials to dated Brent.

* Sonangol was offering three Dalia cargoes, a Sangos for and Saturno.

* It had lowered its offer levels, bringing Dalia to a 90 cent discount, from a 75 cent discount, Saturno to a 75 cent discount, from a 65 cent discount, and Sangos to minus 40 cents, from minus 30 cents.

* Shell had purchased the cargo of Nigeria’s Antan that Unipec sold earlier in the week, a trader said.

* Shell had also sold its own cargo of Bonga, for early April loading, that traders said was distressed.

* There were many cargoes left for sale from the May loading plan, and some from May, putting downward pressure on differentials.

* While the Usan loading plan was pending, which traders said was a result of disagreements over who would get the cargoes, May’s exports were on track to hold mostly steady from April’s level of roughly 1.85 million barrel per day (bpd).
TENDERS

* Shell and Chevron had won a tender to supply India’s IOC with late-May loading West African oil, traders said. IOC also issued a fresh mini-tender for additional May-loading oil.
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* Royal Dutch Shell has filed a criminal complaint against a former senior employee over suspected bribes in the $390 million sale of an oilfield in Nigeria, where the company is already under investigation over a separate deal.

* U.S. crude inventories rose by 1.6 million barrels in the week to March 23, compared with analysts’ expectations for a decrease of 287,000 barrels. Gasoline and distillate inventories fell unexpepctedly.

Reporting by Libby George Editing By Elaine Hardcastle

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Joseph Afam (Local Contents and Partnership Editor) (070 3949 0464) Joseph Afam is a energy and finance journalist, who has years of experience in journalism, he started his journalism career in Nigeria’s top financial newspaper in Lagos. He’s a graduate of Economics and Finance from University of Ebonyi State, Nigeria He has won series of awards and regconitions Contact him for any editorial deals and advertorial issues on # Joseph.Afam@naija247news.com, editor@naija247news.com, Cell: 070 3949 0464

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