As Chinese quotas extended
Lagos, July 9 – Nigerian oil continued to face an uphill battle drawing attention from European buyers amid sliding prices for competing grades.
Physical crude differentials were slipping in many regions due to consistently poor refining margins and Nigerian lighter grades faced pressure from cheap U.S. and Mediterranean oil.
- Offers for lighter Nigerian crude have slipped after European buyers showed almost no interest in August-exporting cargoes.
while extended import quotas for Chinese independent refiners could buoy Angolan crude.
- The lifting of force majeure on exports of Libyan crude will likely also drag down prices, traders said.
Steady demand from Indian refiners and Turkey’s Tupras provided some support to prices.
* China has issued more non-state crude oil import quotas to refiners, for a total of 195.93 million barrels in its third batch for 2020, sources said.
China’s Zhejiang Petroleum & Chemical Co (ZPC) also became the first independent Chinese refiner to receive a fuel export licence, signalling greater future crude demand.
Still, Chinese buying of West African oil is relatively slow this trading cycle with the possibility that state refiners could cut runs due to little demand in late August.
Dalia crude was last offered for around dated Brent plus $2 while Girassol has sold out its small handful of cargoes for August with sale prices at about $3 above dated Brent.
The Kriti Bastion oil tanker is making its way to Libya’s recently re-opened Es Sider oil port, two shipping sources said and ship tracking data showed on Thursday.
India’s fuel demand fell 7.9% in June compared with the same month last year.