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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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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