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W. Africa Crude-Angolan, Congolese crude still awaits buyers

Published 10/09/2019, 16:38
Updated 10/09/2019, 16:41
© Reuters.  W. Africa Crude-Angolan, Congolese crude still awaits buyers

LONDON, Sept 10 (Reuters) - Significant amounts of heavy

Angolan and Congolese crude oil remained to be sold in October

as East Asian markets appear increasingly interested in lighter

grades.

* Asian refiners are buying more light crude and trimming

purchases of heavier oils, as they tweak production to meet

rising demand for low-sulphur fuels in the shipping sector.

* Steep backwardation was already making the journey for

traditionally sought-after heavy Angolan and Congolese grades

less cost effective for East Asian buyers.

* Around 10 cargoes of Angolan oil remain available for

export in October along with about four out of nine of Congo's

cargoes of Djeno crude.

* Nigerian Bonny Light was still being offered at a nearly

$3 premium compared with dated Brent, but sluggish European

gasoline cracks made one buyer say cargoes to the continent

probably would not trade at any more than $2.50 over.

* In a sign of increased Asian interest lately, two VLCCs

carrying Nigerian Akpo and Egina crude are en route to China.

* China took nearly 3 million barrels of Nigerian crude in

August, over three times the average monthly rate in 2019.

TENDERS

* Indonesia's Pertamina issued a buy tender for light crude

cargoes, including West Africa, for Nov. 1-19 delivery. It

closed on Friday and remains valid until Sept. 10.

* Indonesia's Pertamina issued a second buy tender for

condensate cargoes for Dec. 1-5 delivery cargoes. It closed on

Friday and remains valid until Sept. 10.

RELATED NEWS

* India's Nayara Energy Ltd, part-owned by a consortium led

by Russian oil major Rosneft, said it is scouting for

ultra-heavy oil amid tightening supply following U.S. sanctions

against Iran and Venezuela. * China National Petroleum Corp (CNPC), a leading buyer of

Venezuelan oil, will skip cargo loadings for a second month in

September as the state oil giant looks to avoid breaching U.S.

sanctions, two sources said.

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