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W. Africa Crude-Angolan under pressure amid low Chinese interest

Published 17/03/2021, 19:31
© Reuters.
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LONDON, March 17 (Reuters) - Angolan crude was under
pressure on Wednesday in an unusual overhang as arbitrage
economics dented demand and China lapped up more Iranian crude.

* The Dubai spread to dated Brent BFO-DUB1-E has been
fluctuating between $1 and $2 a barrel for the last month,
making dated-priced grades less appealing. European demand has
also been thin.
* "Anything left of Bonny or other Nigerian and Angolan is
now really at the mercy of Europe and so far, there has been
next to no interest from that region. We should have foreseen a
tough spring given European countries are still grappling with
2nd and 3rd Covid waves," one trader said.
* Around seven April cargoes of Angolan crude were still
left with equity holders on top of cargoes on re-offer while the
May programme has already started trading.
* Chevron offered a cargo of Cabinda at dated Brent plus 60
cents loading April 19-20, but buying interest was considerably
lower. Total also offered a cargo of the same grade loading
April 26-27.
* Total bought a cargo of Pazflor from Equinor in the Platts
window at dated Brent minus $1.00 a barrel loading May 1-2.
* Equinor was also offering a cargo of Girassol in the
window loading May 10-11 at dated Brent plus 20 cents.
* Eni sold two March loading cargoes, Congolese Djeno and
Gabonese Oguendjo, to India's Reliance this week in a further
sign of weak demand due to the promptness.
* Shell was offering Nigerian Bonga for April loading at
dated Brent plus $1.10 but this was considered on the high side.
* India's MRPL issued a buy tender closing on Thursday for
April loading crude.
* India's IOC also issued a fresh tender for May loading
crude closing later this week.

RELATED NEWS
* Nigeria's cabinet has approved $1.5 billion of spending on
the modernisation of the Port Harcourt oil refinery and awarded
a contract to Italy's Tecnimont MTCM.MI , Petroleum Minister
Timipre Sylva said on Wednesday.
* A Milan court acquitted energy company Eni ENI.MI , its
chief executive and Royal Dutch Shell RDSa.L on Wednesday in
the oil industry's biggest corruption case revolving around the
$1.3 billion acquisition of a Nigerian oilfield a decade ago.

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