W. Africa Crude-Nigerian OSPs, programmes emerge

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LONDON, Jan 17 – Spot trade was subdued on Friday
as traders awaited allocations following the release of the
latest Angolan loading programme.

NIGERIA
* Nigeria’s NNPC lowered February official selling prices
(OSPs) for Bonny Light crude to dated Brent plus 232 cents per
barrel from 251 cents in January and Qua Iboe to 237 cents from
266 cents per barrel.
* A large glut of over 35 cargoes remain for export in
January and February, and despite extremely sluggish trading in
the run-up to the OSPs and for much of the last trading cycles,
the official prices far outstrip offer prices for many grades.
* The NNPC set the prompt price for Okono crude at dated
Brent plus $2.50, though an a cargo for the grade has been
offered by Vitol on the Platts window for $1.35.
* The OSPs for February and January are considered by some
market players to be disconnected from the reality of market
backwardation and higher shipping costs which have discouraged
buying.
* Eight cargoes from the Qua Iboe stream will be exported in
February, four assigned to Exxon and four to the NNPC.
* Four cargoes are set for export from the Erha stream, two
from Yoho and two of Zafiro from Equatorial Guinea.

ANGOLA
* Production started at ENI’s Agogo oilfield offshore
Angola at 10,000 barrels per day (bpd) and output is expected to
rise to 20,000 bpd in the coming months.
* A small handful of cargoes remain for export in February
after March programmes emerged on Thursday.
* The overhang is slightly smaller than in previous months
as demand for some heavier sweet grades remained robust and
price markdowns belatedly attracted buyers.

RELATED NEWS
*China’s crude oil throughput rose to a record high in 2019
following the start-up of two mega-refineries, official data
showed, with December posting the highest daily run-rate on
record.
* Eni wins licence in Namibe Basin offshore Angola

(Reporting by Noah Browning; editing by David Evans)

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