LONDON, July 1 – Unusually slow Chinese buying has led to slow sales of heavier West African grades, while a broad switch in desired crude slates from sour to sweet crudes is boosting Nigerian oil.
- State Chinese buyers continue to hold off on buying Angolan crude due to vast domestic stocks, with independent refiners providing little relief.
Traders cited a lack of reduction to prices for August-loading barrels, which have been set high due to modest improvements to refining margins of some middle distillates.
Iraq will reduce crude oil exports from its southern terminals by about half in July, mainly its Basra Light flows.
The planned exports will go mostly to Asia, making a dearth of sour oil in Europe even more extreme and convincing refiners to switch to lighter, sweeter grades.
The shift is due to boost Nigerian grades, but prices remained steady, while vast volumes of relatively cheap light U.S. oil continues to dominate European markets.
* Tens of millions of barrels of crude and oil products stored on tankers at sea due to the coronavirus crisis are being sold, in a sign fuel demand is recovering as lockdowns ease, shipping sources say.
- India’s fuel consumption rose in June compared with May, continuing with a gradual recovery as industrial and transport sectors reopened after a stringent lockdown, a government statement issued on Wednesday said.