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W. Africa Crude-High freight rates weigh on offers

Published 27/12/2019, 17:00
W. Africa Crude-High freight rates weigh on offers

LONDON, Dec 27 (Reuters) - Freight rates for major routes

from West Africa to Europe and East Asia have settled near 2019

highs and sellers have offered cargoes for low prices relative

to last month in order to drum up interest during the holiday

buying period.

* Freight rates for supertankers from Angola to China and

for suezmaxes from Nigeria to Europe have remained steady for

days at nearly $5 and nearly $3 a barrel respectively.

* The rates have dissuaded usually more robust Chinese

buying of heavier sweet crudes from Congo, Cameroon and Angola

in recent weeks, though demand for lower sulphur fuels remains

generally high.

* Angola's state oil company Sonangol offered two Dalia

cargoes this week for below dated Brent plus $3.00, around 50

cents lower than at this time in the trading cycle last month.

* Still, one potential buyer said Sonangol's asking prices

were inflated and didn't reflect a market weighed down by

shipping rates and lacklustre margins.

* At just over 842,000 barrels per day (bpd), Angola's

exports to China in December were among the lowest in 2019.

TENDERS

* India's HPCL has issued a buy tender for cargoes loading

Feb. 10-20 or for March 10-20 delivery, with bids remaining

valid until Dec. 31.

* Taiwan's CPC fulfilled a tender for crude arriving in

March with U.S. WTI.

RELATED NEWS

* Nigeria LNG (NLNG) signed a long-awaited final investment

decision on its Train 7 processing unit in Abuja on Friday,

taking a step forward in increasing its liquefied natural gas

production. * The Organization of the Petroleum Exporting Counters and

its allies, known as OPEC+, may consider wrapping up their oil

output reduction in 2020, Russian Energy Minister Alexander

Novak said.

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