W. Africa Crude-Light crude under pressure, Angolan nearly sold out

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

LONDON, June 12  – Light sweet grades remained under downward pressure, although the Bonny Light force majeure took some barrels off the market. Shaky Asian demand concerned sellers of medium and heavier grades.

PHYSICAL MARKETS

* The overhang of Nigerian oil remained acute despite a force majeure from SPDC on Bonny Light crude.

* Traders said cargoes of Bonny were still loading and trading despite the force majeure, which came following a leak on the Trans Niger pipeline.

* Forcados was loading as planned and even trading, although details on the counterparties were not immediately available. Offers were at premiums of around 50 cents for June loading and 80-90 cents for July loading.

* Deals on Forcados were more likely at discounts of 10-30 cents, traders said, until the grade’s quality and loading stabilised.

* Medium and heavier crudes were faring better, given less competition from the likes of Libya and the United States.

* Roughly five cargoes of Angolan oil for July loading were left, including Saturno and Cabinda.

* Some crude was booked to sail west, with Phillips66 loading Olombendo and CLOV to sail to Canada and Aseng from Equatorial Guinea loading for the U.S. Gulf.

* Still, slowing demand in China for new oil bookings cast a shadow over August loadings, which were due later in the week.

TENDERS

* India’s IOC was running a tender to buy crude loading in August, but earlier cargoes could be accepted as well, traders said.

* A tender from India’s MRPL was due later in the week.

RELATED NEWS

* Saudi Arabia, the world’s top oil exporter, will limit volumes of crude to some Asian buyers in July and deepen cuts in allocations to the United States, industry sources with knowledge of the matter said on Monday.

* China’s top state refiner Sinopec Corp 0386.HK may cut fuel output in the third quarter, said four sources with knowledge of the matter, as the company contends with a domestic fuel glut, competition from independent rivals and slower demand growth.

* Nigeria’s acting president Yemi Osinbajo signed a 7.44 trillion naira budget into law on Monday as Abuja plans record spending to pull the economy out of recession.

 

(Reporting By Libby George; Editing by Edmund Blair) ))

 

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