W. Africa Crude-Angolan offers steady but demand still elusive

Published 29/07/2020, 16:38
© Reuters.

LONDON, July 29 (Reuters) - Sellers of West African oil
stuck to price offerings which buyers resisted, citing an
oversupplied market and poor margins, leaving spot activity
subdued.

ANGOLA
* Sonangol kept its offers of September-loading crude
steady, traders said.
* Dalia was being offered at dated Brent plus $1.60,
Gindungo and Girassol at dated Brent plus $2.10.
* With cargoes still remaining for export in August, Angolan
crude is having one of its slowest-selling trading cycles in
many months.
* Potential buyers expected little trading at further
discounts of around 50 cents within a week.
* Chinese buying has waned, but port congestion leading to a
backlog of crude purchased earlier could be showing signs of
waning as cargo offloadings were underway in Qingdao, a trader
said.

NIGERIA
* Indian refiners are cutting crude processing and shutting
units for maintenance as fuel demand falls and global refining
margins are weak, officials at the companies said. * The moves will likely dent one of the only consistent
supports for Nigerian crude demand through the pandemic.
* Offers for light Nigerian crudes Bonny Light and Qua Iboe
were still being offered for around dated Brent plus $1.00,
leading to a few cargoes being sold to European buyers in recent
days.

RELATED NEWS
* U.S. oil refiners in coming days are expected to report
the worst second-quarter results in a decade, with production
outrunning demand while pandemic-related closings have sapped
summer travel. * Tullow Oil said on Wednesday it was set to book $1.4-1.7
billion in impairments before tax in its half-year results, as
it follows larger rivals in lowering its oil price forecasts.

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