W. Africa Crude-Heavier oils stay strong on Chinese demand

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LONDON, May 29 (Reuters) – Heavier oils from Angola and Congo remained steady at high prices on Friday, while Nigerian oil fared lower amid a large glut of unsold cargoes.

* A cargo of Congolese Djeno crude was being offered for dated Brent plus $1.50.
* Angolan Girassol was being offered for $3.30, down about 20 cents from last week.
* “Numbers are very strong, pushed from China,” one trader said.
* With around 50 Nigerian cargoes yet to be sold for June and July, oil from Africa’s number two exporter continues to face a difficult path to market amid sluggish demand, especially from Europe.
* Crude output by the Organization of the Petroleum Exporting Countries (OPEC) in May and April showed compliance to a production cut pact of 19% from Nigeria and 73% from Angola.

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* While vast cuts by producer countries and renewed fuel consumption from easing coronavirus lockdowns may soon rebalance oil supply and demand, some analysts and traders see a glut in storage keeping the market in contango for much longer.

* China’s securities regulator has approved the launch of low-sulphur fuel oil (LSFO) futures, the Shanghai Futures Exchange (ShFE) said on Friday.

(Reporting by Noah Browning; Editing by Shinjini Ganguli)

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