W. Africa Crude-Angolan sells for cheap, held back for domestic refineries

Published 17/10/2019, 17:29
© Reuters.  W. Africa Crude-Angolan sells for cheap, held back for domestic refineries

LONDON, Oct 17 (Reuters) - Angolan oil continued to be

marked down to the lowest prices of the year and some

once-treasured heavier sweet oil was even taken off the market

and used at home for lack of buyers.

* Despite easing freight rates to both Asia and Europe, West

African oil exports continued to suffer from shipping costs

following U.S. sanctions a top Chinese fleet.

* While some European refiners bought WAF oil liberally,

given price markdowns and a short voyage which made it the most

logical destination, price pitfalls continued to vex traders.

* "It is a tough market, very volatile and unpredictable",

one European buyer said.

* Angolan state oil company Sonangol decided to retire one

of its cargoes of Cabinda, usually a best-seller, for use in its

domestic refining system after failing to find a buyer.

* Another prized heavy sweet grade, Dalia, was sold by

Sonangol after being discounted to around a dollar above dated

Brent, below previous months' prices at and above $2.50.

* The December loading preliminary programme lacked Saxi

crude, but traders expect one or two cargoes from the field to

be added when the export schedule was finalized.

* Nigerian Bonny Light, one of its key grades, was being

offered at $1.60 above dated Brent, down from about $2.50 and

above in previous months.

* India's HPCL has issued a buy tender, for three VLCCs of

crude loading in the first quarter of next year, set to close on

Friday.

RELATED NEWS

* Angola is hoping sweeping economic reforms will smooth an

ambitious plan to sell key state assets, including stakes in oil

company Sonangol, a share of Puma Energy and more than 100 other

enterprises. * Swiss federal prosecutors have found oil trader Gunvor

Group criminally liable for corruption in Congo Republic and

Ivory Coast, ordering it to pay almost 94 million Swiss francs

($94.8 million), the Swiss Attorney General's Office said.

* Elevated freight rates for clean product tankers are

deterring Asian gasoil cargoes from sailing westwards even as

Singapore prices for the industrial fuel reach steep discounts

against northwest European rates, trade sources said.

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