W. Africa Crude-Diffs under pressure due to oil sales from storage

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BRUSSELS, Sept 22 – Sales from storage, spurred by a flat forward structure in Brent prices, were weighing on differentials for West African crude oil. Angolan cargo prices were under particular downward pressure, with close to 10 million barrels from the October programme up for sale.
ANGOLA

* Unipec, the primary buyer of Angolan oil, was offering at least four of its October-loading Angolan cargoes, including Nebma, Dalia, Kissanje and Plutonio. It was also offering Congolese Djeno and Ghana’s Jubilee.

* Trader Statoil was also offering two VLCCs of Angola oil that will load in OCtober, including CLOV, Dalia, Kissanje and Mondo.

* The offers were weighing on differentials, as the availability is particularly large for this point in the cycle. Additionally, the lack of contango meant that most traders were keen to sell their cargoes quickly, as they would lose money if they loaded without buyers.

* Angola’s November exports will drop to 48 cargoes, or 1.54 million bpd in November. Sonangol was offering just two cargoes, both Dalia, at premiums of 30 cents fob to dated Brent. .
NIGERIA

* While some Nigerian oil was being sold out of storage, smaller loading programmes meant there was a lower amount of excess oil for prompt loading.

* Qua Iboe exports in November were limited to five cargoes due to subsea maintenance at the export platform, while Bonny Light remained under force majeure due to the closure of one of its two export pipelines.

* Around 10 October-loading cargoes remained, with several cargoes of Forcados among them. Traders said offer levels of close to $2 per barrel made it too expensive for some buyers.

* The Bonga export programme for November emerged with five cargoes, down from six in October.
TENDERS

* Total sold the cargo Taiwan’s CPC bought from Saldhana Bay storage, source said. It was Nigerian Escravos.

* The cargo of Angola’s Saxi it purchased was likely the end-October loading cargo that was allocated to Sinochem, a source said.

* A tender from India’s BPCL to buy oil closed on Friday, but details on the award were not immediately available (Reporting by Libby George; Editing by Adrian Croft)(Reuters)

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Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of Naija247news.com and also sits on the board of Students In Business Awards, (SIBA).

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