India continues to provide silver lining for Nigerian crude

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LONDON, May 28 – India provided one of the few outlets for Nigerian oil as East Asian tenders were awarded to crude from elsewhere and a glut builds up.

* Tenders for sweet crude oil by Thailand’s IRPC and Taiwan’s CPC were not awarded to any West African grades, with the latter taking U.S. oil instead.
* Indian oil firms took in about 5-6 million barrels of Nigerian crude last week and 2 million so far this week, a trader said, with India’s IOC awarding a tender to Total for Akpo crude and possibly one other cargo.
* There remain around 50 unsold cargoes of Nigerian crude seeking buyers, with European demand largely non-existent.
* Contango in the global oil market has narrowed recently amid signs India and China are tapping vast amounts of floating storage collecting since demand dried up amid the coronavirus pandemic.
* Oil majors and trading houses have been offering Middle Eastern and West African oil stored at sea as spot prices strengthened in Asia, trade sources said.
* BP was not successful in selling a cargo of July loading Angolan Girassol crude at a little over dated Brent plus $3 and remained unclear if it had sold a cargo of Saturno it was
also offering.

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* U.S. crude oil and distillate inventories rose sharply last week, the Energy Information Administration said on Thursday, while fuel demand remained slack even as various states eased movement restrictions to stem the spread of the novel coronavirus.
* Saudi Arabia and some other OPEC oil producers are considering extending record high output cuts until the end of 2020 but have yet to win support from Russia, according to OPEC+
and Russian industry sources.

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