W. Africa Crude-Angolan July overhang clears on signs of optimism for WAF

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LONDON, June 27 (Reuters) – Angola’s last remaining cargoes for July loading were clearing as improving Asian margins and reduced U.S. refining capacity could spell a stronger month for Angolan and Nigerian crude.
ANGOLA

* At most only a few cargoes may remain for July loading, which could be absorbed by sellers BP, Equinor and Total .

* Asian refining margins for gasoil climbed to their highest in nearly four months, but East Asian markets still appear well supplied.

* Unipec was heard to have sold a cargo of Saturno quickly at a premium of 10 cents compared to dated Brent.

* Backwardation and freight rates along with middling demand and margins may again act as a disincentive for Chinese imports of Angolan oil after a July marked by reduced purchases.

* Market participants see the offers by Unipec on the window as also helping to cool prices, though the swift sale may undercut such a strategy.

NIGERIA

* Northwest European gasoline refining margins rose sharply following a large draw in U.S. inventories and a decision to close Philadelphia’s PES refinery, which supplied 55,000 bpd of gasoline to the U.S. East Coast corridor.

* The developments are set to boost European demand for Nigerian crude after June arrivals were the highest in 7 months on North Sea outages but July exports were more troubled.

The possibility of a permanent shutdown at the fire-stricken Philadelphia Energy Solutions refinery may benefit Nigerian crude as U.S. gasoline demand rises.
TENDERS

* India’s HPCL was heard to have issued a tender set to close this week but details did not immediately emerge.

RELATED NEWS

* OPEC is expected to roll over a deal on cutting supplies at a meeting next week and discuss deepening the curbs that have been in place since Jan. 1, Iraq’s oil minister said on Thursday.

* Oil fell to around $66 a barrel on Thursday, weighed down by concerns over whether the G20 summit will produce a breakthrough on trade and perceptions that supply is ample despite prospects for continued OPEC curbs. (Reporting by Noah Browning; edting by Emelia Sithole-Matarise)

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