W. Africa Crude-Indian tender helps mop up Nigerian overhang


LONDON, Aug 12 (Reuters) – Spot activity was slim on Monday but an Indian refiner took a greater than usual volume in its latest buy tender, helping to mop up excess Nigerian crude in the increasingly competitive Altantic Basin.

* Around five cargoes were still said to be available from the September loading programme.

* The October programme is expected to emerge on Aug. 15.

* Over 30 cargoes of Nigerian crude were still available for September loading, weighing on differentials.

* Nigerian crude has been selling slower than usual as U.S. exports of similar specification crude ramp up further. In a sign of even more competition to come, a major new U.S. pipeline has just started deliveries.

* Global commodities trader Trafigura said on Monday it has started shipments of Permian basin crude to the Corpus Christi hub in Texas via the new Cactus II pipeline system.

* Cactus II is the first of three major pipelines expected to start up before the end of the year.

* Traders said that India’s IOC took around 5 million barrels of west African crude with Agbami from Chevron, Agabmi and Girassol from Glencore and the remainder from Vitol.

* Traders added that the volume was unusually high for the short time period.

* IOC has issued two tenders for Oct. 9-18 and 18-27 loading. They close on Wednesday.

* Saudi Aramco is planning a multibillion dollar investment in India’s Reliance Industries as the energy giant diversifies its oil business, where weaker prices cut its first-half profit by 12%.

Reporting By Julia Payne; editing by David Evans

Previous articleGood news for African chocolate lovers as Ghana said to produce biggest cocoa crop in 3 years
Next articleSouth Africa’s rand slips to new 11-month worst as local politics weigh
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.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.