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W. Africa Crude-Angolan offers tumble as freight rate pain continues

Published 04/10/2019, 17:00
Updated 04/10/2019, 17:10
W. Africa Crude-Angolan offers tumble as freight rate pain continues

LONDON, Oct 4 (Reuters) - Offers for Angolan crude slipped

further on Friday but remained not far from all-time highs as a

sudden spike in freight rates last week dampened demand.

ANGOLA

* Angolan state oil company lowered its offer for a cargo of

November-loading Cabinda at a premium of $3.10 compared to dated

Brent, down 40 cents from the day before.

* It was also offering a cargo of Dalia at $2.80 and

Gindungo at $1.60.

* China's Unipec re-offered three Angolan cargoes, lower by

at least 50 cents each.

* It offered Dalia at $2.50 above dated Brent, Saturno at

$1.30 and Mostarda at 65 cents.

* The jolt to shipping rates after the United States imposed

sanctions on divisions of Chinese shipping fleet Cosco made the

journey from West Africa to East Asia far less attractive,

leading to the drop in prices by sellers.

* Heavy sweet grades such as Angolan Dalia and Nigerian

Forcados were still being offered near all-time highs ahead of

IMO 2020 rules for shipping fuel due on Jan. 1.

* Bunkering hub Singapore is well-supplied with low-sulphur

fuels, likely avoiding any market chaos around the time of the

transition, but demand for suitable oil remains high.

* Australia's Santos sold a cargo of heavy sweet Van Gogh

crude at a premium of around $13 a barrel to dated Brent,

traders said, up from about $8 last month -- another sign of

sky-high demand for such oil grades.

NIGERIA

* Nigerian crude exports also face a difficult demand

picture as backwardation and freight costs weigh.

* A slide in price offers in recent days is boosting sales

however and clearing October cargoes, with Qua Iboe selling for

a little over $2.50 above dated Brent.

* A force majeure declared by Shell last month remains over

exports of major grade Bonny Light, revising the export

programme late on Thursday to reflect further delays, projected

at between two and five days.

* The repeated delays to the export schedule have led to

uncertainty which have kept buyers wary, traders said.

TENDERS

* Tenders by India's IOC for two cargoes of West African

crude for November closed, but the winners did not immediately

emerge.

RELATED NEWS

* An exploration and production unit of China's state energy

giant PetroChina has drilled into high flows of natural gas and

condensate in an exploration well in the northwestern region

Xinjiang, in what could be another major gas find. * Bernard Looney, who will replace Bob Dudley as chief

executive of BP when he retires next year, faces the tricky task

of navigating the energy major through a rising tide of

environmentalism and move to a low-carbon economy.

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