W. Africa Crude-Angolan July overhang clears on signs of optimism for WAF

Published 27/06/2019, 16:40
W. Africa Crude-Angolan July overhang clears on signs of optimism for WAF
BP
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EQNR
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TTEF
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LONDON, June 27 (Reuters) - Angola's last remaining cargoes
for July loading were clearing as improving Asian margins and
reduced U.S. refining capacity could spell a stronger month for
Angolan and Nigerian crude.


ANGOLA
* At most only a few cargoes may remain for July loading,
which could be absorbed by sellers BP BP.L , Equinor EQNR.OL
and Total TOTF.PA .
* Asian refining margins for gasoil GO10SGCKMc1 climbed to
their highest in nearly four months, but East Asian markets
still appear well supplied. * Unipec was heard to have sold a cargo of Saturno quickly
at a premium of 10 cents compared to dated Brent.
* Backwardation and freight rates along with middling demand
and margins may again act as a disincentive for Chinese imports
of Angolan oil after a July marked by reduced purchases.
* Market participants see the offers by Unipec on the window
as also helping to cool prices, though the swift sale may
undercut such a strategy.

NIGERIA
* Northwest European gasoline refining margins rose sharply
following a large draw in U.S. inventories and a decision to
close Philadelphia's PES refinery, which supplied 55,000 bpd of
gasoline to the U.S. East Coast corridor.
* The developments are set to boost European demand for
Nigerian crude after June arrivals were the highest in 7 months
on North Sea outages but July exports were more troubled.
The possibility of a permanent shutdown at the fire-stricken
Philadelphia Energy Solutions refinery may benefit Nigerian
crude as U.S. gasoline demand rises. * India's HPCL was heard to have issued a tender set to
close this week but details did not immediately emerge.

RELATED NEWS
* OPEC is expected to roll over a deal on cutting supplies
at a meeting next week and discuss deepening the curbs that have
been in place since Jan. 1, Iraq's oil minister said on
Thursday. * Oil fell to around $66 a barrel on Thursday, weighed down
by concerns over whether the G20 summit will produce a
breakthrough on trade and perceptions that supply is ample
despite prospects for continued OPEC curbs.

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