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W. Africa Crude-Oil volumes eastward steady for October amid freight crunch

Published 25/10/2019, 16:24
© Reuters.  W. Africa Crude-Oil volumes eastward steady for October amid freight crunch
ENI
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LONDON, Oct 25 (Reuters) - Crude exports from West Africa to

East Asia were set to roughly match those of previous months,

although U.S. sanctions on a top Chinese shipping fleet, which

were imposed on Sept. 24 sending freight costs soaring, will

likely impact November more.

NIGERIA

* Far Eastern countries were set to import 45.2 million

barrels of West African oil, down just 3 million from the

previous month and in line with much of the rest of 2019.

* Traders said the impact of the freight cost price spike

would affect November-loading cargoes more, but as transport

costs, especially for VLCCs, ease the crisis may soon abate.

* Backwardation and middling refining margins have impeded

West African flows to Asia since the beginning of the summer.

* West African crude loading in October bound for Europe at

31.1 million barrels was the second-lowest of any month this

year, however, as margins especially for gasoline eased.

* A trader said Nigeria's Erha stream, which usually

produces 5-6 cargoes, was down for maintenance and therefore

lacked a December loading programme.

* Stockpiles of low-sulphur marine fuels held in floating

storage around the Singapore area are steadily growing ahead of

IMO 2020 shipping rules. * Angola's November export schedule was down to one or two

cargoes at most, traders said, as Mostarda continued to struggle

for buyer interest but even heavy sweet Dalia sold slowly.

RELATED NEWS

* Saudi Arabia held its position as China's largest crude

oil supplier in September helped by demand from new refineries

and as imports from Iran and Venezuela continued to fall due to

U.S. sanctions, customs data showed on Friday. * Energy group Eni ENI.MI achieved its highest ever oil

and gas production rate for a third quarter, softening the blow

of lower quarterly earnings because of weak oil and gas prices.

* The U.S. Treasury Department on Thursday issued a nearly

two-month waiver for companies to wind down transactions with a

Chinese tanker company it sanctioned last month for allegedly

transporting Iranian oil.

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