W. Africa Crude-Asian demand boosts differentials

Published 27/10/2020, 17:59
© Reuters.

LONDON, Oct 27 (Reuters) - East and South Asian demand
sharply pulled up differentials for West African and other
global grades, even as the futures market worried over increased
supply and unclear future demand.

* Total sold two spot cargoes of Angolan crude oil, a Dalia
for about dated Brent plus 75 cents and a Pazflor, likely to
Chinese buyers.
* Private refiner quotas for early 2021 mean China is
ramping up its crude demand in a move that has cheered sellers
and sent Angolan crude differentials up by around 30 cents.
* Temporarily reduced flows from the United States due to
storms have sent up offer levels for Russian, Brazilian and
Angolan crude likely bound for the Chinese market.
* The uptick comes despite increased supply from Libya and
relatively static differentials in the North Sea market.
* India's IOC is running a tender for two cargoes of crude
for which West African grades are eligible, for Dec. 11-20
loading set to close on Wednesday.

RELATED NEWS
* There are emerging signs that crude oil demand is
gradually recovering in major Asian countries outside China, a
key pre-condition to sustaining any bullish view of the market.
* Energy firms and ports along the U.S. Gulf Coast were
bracing on Tuesday for another test as Hurricane Zeta, the 11th
of the season, entered the Gulf of Mexico.

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