W. Africa Crude-Angolan cargoes clearing on discounts but overhang looms

Published 13/06/2019, 16:51
W. Africa Crude-Angolan cargoes clearing on discounts but overhang looms

LONDON, June 13 (Reuters) - Cargoes of Angolan crude oil for
July loading picked up on Thursday due to sharp discounts and
increased Chinese interest, though it appeared unlikely they
would sell out before the August programme emerges early nect
week.

ANGOLA
* As few as 6 cargoes of Angolan crude remain for July
loading, putting it on track for the first overhang of 2019 as
August-loading programmes are expected on Monday.
* The sales have followed daily price reductions and is due
to stepped-up buying from Chinese state and independent
refiners, sellers said.
* A steep Dubai-Brent spread DUB-EFS-1M along with weak
Asian refining margins have dented demand from China, Angola's
top buyer.

NIGERIA
* European refiners continue to largely refuse price
offering for lighter Nigerian grades, with Bonny Light and Qua
Iboe being offered for around $2.50.
* Down at least $1.50 from price offerings at the beginning
of the month, the two major grades still appear to be ill-suited
for Europe due to poor gasoline margins.
* Unexplained loading delays for Bonny Light and Forcados
unnerved both buyers and sellers, as comparable light U.S.
grades continue to make inroads into traditional markets.


TENDERS
* India's IOC was heard to have issued a tender for West
Africa crude for mid-August delivery.
* Uruguay's ANCAP purchased a cargo of WTI Midland and
Angolan Nemba for its tender which closed on Tuesday.


RELATED NEWS
* Attacks on two oil tankers on Thursday in the Gulf of Oman
left one ablaze and both adrift, shipping firms said, driving
oil prices LCOc1 up 4% over worries about Middle East supplies.
* OPEC has cut its forecast for global oil demand growth and
warned of potential further cuts as international trade disputes
continue to fester, building a case for prolonged supply
restraint over the rest of 2019. * The International Monetary Fund said its board had
completed the first review under Angola's extended arrangement
and approved a disbursement of $248.15 million, taking the total
of such payments to about $1.24 billion.

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