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

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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.

TENDERS
* 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) ))

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Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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