W. Africa Crude-Diffs climb on strong buying interest

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, Aug 1 – Differentials found further support on strong buying interest on Tuesday despite the closure of Europe’s largest oil refiner for at least a further two weeks.

* Differentials were supported by stronger buying interest in the United States and Asia, with new tenders from Indonesia and India stoking hopes that more cargoes will clear.

* Roughly 40-45 cargoes from the September plan remained available.

* Offer levels were firming, notably with distillate-rich Forcados offered as high as $1.70 per barrel above dated Brent, Qua Iboe at a $1.50 premium, Bonga at a 40 cent premium and Brass at a $1.30 premium.

* Less than a handful of September-loading cargoes remained.

* Lower exports from Saudi Arabia was spurring buyers to load up on alternative heavy crudes, while strong distillate margins also aided medium grades.

* BP was offering a cargo of Mondo, while Total offered a cargo of Dalia at a 40 cent discount to dated Brent.

* Indonesia’s Pertamina was running a tender to buy crude for October-delivery cargoes.

* India’s IOC was also running a tender to buy west African crude loading Sept. 20-30.
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* Shell said its 404,000 bpd Pernis refinery, Europe’s largest, would remain closed until the second half of August at the earliest.

* Oil slipped from two-month highs as ample global supplies counteracted strong demand during the third quarter.

* BP profit slipped, but beat forecasts, after an exploration write-off in Angola. It said it expects oil prices to hold at around $50 a barrel into next year.

Reporting By Libby George, editing by David Evans


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