W. Africa Crude-Large overhang looms with May programmes due to emerge

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A general view of a crude oil importing port in Qingdao, Shandong province, November 9, 2008. REUTERS/Stringer/File Photo

LONDON, March 14  – The availability of around 35 to 40 West African crude cargoes is fast creating an overhang, with May loading programmes due to start emerging on Wednesday.

* Refinery maintenance in Asia, a rise in Saudi Arabian output last month and U.S. exports are creating more competition and weighing on differentials, traders said.

* In a monthly report, OPEC also said its biggest producer Saudi Arabia increased output in February by 263,000 barrels per day to 10 million bpd, after in January making a larger cut than required by the OPEC accord to ensure strong initial compliance.

NIGERIA

* Monthly discussions between producers and state-owned NNPC on crude allocations have been taking place this week and May loading programmes could start trickling out as early as Wednesday.

* Some March loading cargoes were still available, including an end-March Agbami with Statoil.

* Bonga cargoes were on offer at high premiums of dated Brent plus $1.30 for April due to field maintenance in March. Shell was said to have some in floating storage, putting a cap on gains.

* Vitol and other traders have been offering crude from storage, which is also weighing on the market.

ANGOLA

* Roughly a dozen Angolan cargoes remained from the April export plan.

* No deals took place, traders said, with Dalia and Kissanje still on offer.

TENDERS

* India’s IOC was running a tender for crude loading May 12-22. The full tender closes on March 16.

 

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