W. Africa Crude-Offers for light Nigerian crude stay high

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LONDON, Sept 24 (Reuters) – Energy majors have yet to
significantly reduce price offers for Nigerian crude despite
sliding gasoline refining margins, traders said, possibly due to
hopes for demand for gasoline from Saudi Arabia following
attacks on its oil infrastructure.

NIGERIA
* A significant uptick of 500,000 barrels per day (bpd) of
gasoline has been scheduled to travel from Europe to the Middle
East over the last week.
* The unusual flows indicate Saudi Arabia is looking to
replenish oil products affected by a crippling attack on two of
its main energy facilities Sept. 14.
* At least one cargo of Qua Iboe continued to be offered at
a premium of about $3.00 to dated Brent, likely by Exxon.
* Despite a supply glut of at least two dozen cargoes set to
be exported in October, energy majors have not significantly
reduced offers, leading to sluggish trading.
* Nigeria’s Bonga crude oil stream will load five cargoes in
November, down from six in October.

ANGOLA
* At least five cargoes of Angolan crude remain for export
in October.
* A tender by Taiwan’s CPC for sweet crude was awarded in
part to an Angolan grade but no further details emerged.
* Freight rates and backwardation continued to weigh on
demand for West African grades both in Europe and Asia.
* Still, Asian demand for medium sweet oil such as certain
Angolan grades may stand to benefit from the Saudi oil attacks
and looming new shipping regulations.
* According to consultancy FGE, buying by Chinese
independent refiners has cooled and will lead to a slowdown in
demand starting in late November.

RELATED NEWS
* Nigeria will do “whatever it takes” to protect its economy
from a more than $9 billion arbitration claim over a failed gas
project, policymakers said, but the government will not rule out
settling with a firm registered in the British Virgin Islands.

* Saudi Aramco is buying oil originating in neighbouring
countries to meet its supply obligations to foreign refineries,
sources familiar with the matter told Reuters, after the attacks
on its installations.

(Reporting by Noah Browning; editing by David Clarke)

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