Nigerian crude cargoes struggle as Angolan gets snapped up

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Lagos, Oct 8 (Naija247news) – Differentials for Nigerian crude held unchanged on Monday, as a dearth of bids met an overhang of unsold cargoes, while demand for Angolan remained robust, evidenced by a flurry of fixtures that has pushed shipping rates to near two-year highs.

NIGERIA
* Offers dried to a trickle, given the size of the overhang from both the October and November programmes, traders said.

* The most recent indications for Qua Iboe and Bonny Light for loading in November held unchanged around $1.55 a barrel above the dated Brent price, having drifted down from closer to $1.75 six weeks ago.

* The November programme has struggled to find buyers, thanks in part to unfavourable shipping economics and high freight rates, traders said. Between 15 and 20 cargoes remained from the originally planned 58, traders said.

“Last week, average VLCC spot tanker rates more than doubled to over $30,000/day, the highest level since Feb. 2017. Fixture activity in the Middle East and West Africa increased as refiners fixed crude cargoes to be delivered at the end of refinery maintenance season, which will last through October,” investment bank Jefferies said in a note.

ANGOLA
* The Angolan November programme has just a handful of cargoes still up for grabs, with a week to go until the last loading programme of the year, down from around 8-9 at the end of last week.

RELATED NEWS
Nigerian government officials met with fund managers in New York last week on a non-deal roadshow held to update bondholders on the country’s growth plan after getting out of recession, an investor presentation seen by Reuters on Saturday showed.

* Iranian Oil Minister Bijan Zanganeh said claims by Saudi Arabia’s crown prince over Riyadh replacing Tehran’s oil in the market were “nonsense”, the ministry’s official website reported on Monday.

* The Trump administration is actively considering waivers on sanctions it will reimpose next month for countries that are reducing their imports of Iranian oil, a U.S. government official said on Friday.

TENDERS
* India’s MRPL late last week cancelled two tenders, each for 2 million barrels of sweet crude for delivery in November and December.

* Indonesia’s Pertamina has a crude tender for Dec. 3-5 arrival crude which closed on Monday

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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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