W. Africa Crude-Traders await tenders as spot deals limited

FILE - In this Monday, Dec. 26, 2011 file photo, Shell Bonga offshore oil Floating Production Storage and Offloading vessel off the coast of the Niger Delta in Nigeria. Shell closed the terminal exporting Nigeria's benchmark Bonny Light crude oil on Wednesday May 11, 2016 and was evacuating workers from a threatened oil field as renewed militant attacks cut production in Africa's biggest petroleum producer, the company and a union leader said. (AP Photo/Sunday Alamba, file)

LONDON, May 8 (Reuters) – Spot trade was muted on Nigerian barrels as they competed with U.S. exports and other light crudes available in the Mediterranean. While some Angolan oil had traded, sources said differentials were under downward pressure.

* PetroIneos had purchased the Dalia that Sonangol sold late last week, traders said. The cargo, for June 16-17 loading, was last offered at dated Brent minus $1.70 a barrel.

* ExxonMobil had also sold a cargo of Angolan Girassol late last week, though sources said it was for loading this month. It is expected to sail east.

* Sonangol was still offering five other cargoes, including Girassol at dated Brent plus $1 a barrel, another Dalia, Hungo at dated Brent minus 40 cents a barrel, Sangos at dated Brent minus 60 cents and Olombendo at dated Brent plus $1.20.

* Traders said some Chinese buyers were coming back to the market, and analyst JBC Energy said the backlog of cargoes outside Shandong had mostly cleared.

* Still, buyers are pressing for lower differentials, most sources said.

* Unipec still had to sell five cargoes of May-loading oil delivered to the independent refinery port of Shandong, though it was not offering these inside the trading window.

* It had cargoes of Angola’s Cabinda, Kissanje, Saturno and Mondo, and Congolese Djeno crude.

* Spot trading remained notably limited on Nigerian cargoes, with sellers focused on tenders.

* Several May-loading cargoes were still available, including Bonga, Escravos and Forcados.

* Sellers were largely not aggressively offering, and moving cargoes was complicated by ample availability of U.S. and Mediterranean crude.

* Traders said that while May-loading offers were softer, grades such as Qua Iboe were offered for June loading at premiums of between $1.50 and $1.75 a barrel to dated Brent, but would have to soften to sell.

* May-loading Bonga was offered at roughly $1.30 above dated Brent, and Escravos at $1.25 per barrel premiums.

* Uruguay’s ANCAP was running a tender to buy oil for July 23-27 delivery. An award was expected later on Tuesday.

* Indonesia’s Pertamina is expected to award on Wednesday its tender to buy 3.1 million barrels of crude for July delivery.

* An award for India’s IOC was due later in the week. Its tender sought oil for July 1-10 loading. (Reporting By Libby George; Editing by Mark Potter) ))

Previous articleIMF warns of rising African debt despite faster economic growth
Next articleSnubbing Europe, Trump pulls out of Iran nuclear deal
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.


Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.