Nigerian crude diffs under pressure as Angolan trades slowly

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A ship loads crude oil at Bonga off-shore oil field outside Lagos, October 30, 2007. REUTERS/Akintunde Akinleye

LONDON May 30 – There was downward pressure on Nigerian crudes, particularly as India’s BPCL opted for non-West African oil in its recent tender. An expectation of more Forcados cargoes in the coming weeks was also weighing on price ideas.

NIGERIA

* Roughly 15 cargoes of June-loading Nigerian crude was still available to trade, as well as a good portion of the July loading plan.

* Grades such as Qua Iboe were offered by at least two sellers at premiums of around $1 per barrel versus dated Brent.

* Forcados was quietly offered in the market, but price ideas were not immediately clear. Traders said the grade would likely have to trade at a discount to similar crudes until buyers were confident of its reliability.

ANGOLA

* State company Sonangol sold its cargo of Olombendo to Phillips66, traders said.

* It had cut prices for Dalia to dated Brent minus 90 cents, and was also still offering Hungo and Saturno.

* A slowdown in Chinese buying, as excess cargoes waited to discharge at Qingdao port, was weighing on Angolan oil.

TENDERS

* India’s BPCL opted for Mediterranean crude, rather than West African, in its recent tender. It had issued another tender for July 1-10 loading crude, which closes later in the week.

* Traders said fellow Indian refiner MRPL bought a cargo of Coco from Glencore in its tender, which was awarded last week.

RELATED NEWS

* Angolan President Jose Eduardo dos Santos has returned from Spain, state-owned news Agency Angop said on Monday, following confirmation the 74-year-old was in the European country for health checks. (Reporting By Libby George; Editing by Mark Potter) ))

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