W. Africa Crude-Nigerian diffs fall but offers still prove too pricey

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 9 – Offers for both Nigerian and Angolan cargoes drifted lower on Wednesday, but traders said there were still plenty of competing grades around, meaning prices would have to fall further in order to encourage buying.

* Although spot trade has been fairly slow in the last week, most of the May-loading Nigerian programme had cleared, traders said, leaving only two or three cargoes, down from just below 10 a week ago.

* Roughly two-thirds of the June-loading programme, which contains an originally scheduled 60 cargoes, was still available for sale, sources said.

* Traders said Vitol was offering Angolan Kissanje for delivery in Shandong between late May and early June as low as $1.25 a barrel to the dated Brent price, having previously offered around $1.40.

* Qua Iboe and similar light, sweet grades, have reportedly come down in price to closer to a premium of $1.00 to dated Brent from as high as $1.75 earlier in the week, although without much in the way of buying from China, spot activity was still muted, traders said.

* Sources said Unipec was still offering five cargoes of May-loading oil delivered to the independent refinery port of Shandong, including Angolan Cabinda, Kissanje, Saturno and Mondo, as well as Djeno.

* Sonangol was still offering cargoes of Girassol, Hungo, Sangos and Olombendo, having sold two Dalias in the last few days.

* Uruguay’s ANCAP was expected to award a tender to buy oil for July 23-27 delivery on Tuesday, but traders said the results would likely only be announced later on Wednesday.

* An award for India’s IOC was due later in the week. Its tender sought oil for July 1-10 loading.

* Indonesia’s Pertamina is expected to award a tender to buy 3.1 million barrels of crude for July delivery. (Reporting by Amanda Cooper; Editing by Alexandra Hudson) ))

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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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