W. Africa Crude-Angolan still offered high despite glut, freight costs

Published 01/10/2019, 17:08
Updated 01/10/2019, 17:10
W. Africa Crude-Angolan still offered high despite glut, freight costs
ENI
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LONDON, Oct 1 (Reuters) - Price offerings for some grades of

Angolan crude oil remained high despite generally flagging

Chinese demands as new shipping fuel rules loomed for next year.

ANGOLA

* State oil company Sonangol was offering a cargo of

November-loading Cabinda at $3.50 and Chevron closer to $3.00,

traders said.

* The rates were higher than cargoes for previous months and

comes despite steep freight costs, backwardation and a slowdown

in buying from some Chinese independent refiners.

* The price gambit appeared related to robust East Asian

demand for oil types like Cabinda suited to refining into

low-sulphur shipping fuels ahead of new Jan. 1 global rules.

* Still, at just 24 cargoes, Angolan exports to China in

September were among the lowest in years.

* A small handful of cargoes remain for export in October,

in the longest supply glut for Angola this year.

NIGERIA

* At 25 cargoes, Nigerian exports to Europe were the lowest

since last June amid ample supply from the North Sea and United

States.

* Demand was set to be more robust for the nearly 20 cargoes

still left for export in October as prices offers have dipped

enough for buyers to make purchases despite flattening margins.

* Freight rates for ships fixtured to transport West African

crude spiked around 30% late last week due to U.S. sanctions on

Chinese shipping giant Cosco.

* Those prices eased slightly however, as relatively few

ships were scheduled to transport West African crude Eastward

compared especially to exports from the Gulf.

RELATED NEWS

* U.S. oil production growth is decelerating gradually in

response to lower prices, which should reduce predicted

over-supply in 2020 and force the global oil market back towards

balance. * State-owned Abu Dhabi National Oil Co (ADNOC) has chosen

the Intercontinental Exchange (ICE) to launch a regional oil

benchmark based on its Murban crude grade by next year, three

sources familiar with the matter said. * The U.S. Justice Department has closed investigations into

alleged corruption by oil major Eni ENI.MI in Nigeria and

Algeria without taking any action, the Italian energy group said

on Tuesday. * Nigeria will make cuts to its crude oil output to comply

with OPEC output targets, Mele Kolo Kyari of the Nigerian

National Petroleum Company (NNPC) said on Tuesday.

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