W. Africa Crude-Asian demand seen firming while Europe endures lockdowns

Published 06/01/2021, 18:04
Updated 06/01/2021, 18:06
© Reuters.

LONDON, Jan 6 (Reuters) - Offers continued to slip on
Tuesday for some West African crude grades but signs of firmer
Asian demand appeared with Saudi Arabia set to cut production.

* Traders accelerated crude oil sales from floating storage
in December to meet higher Asian demand amid peak winter
consumption and a Saudi decision to rein in output. * The move signals higher buying appetite from Asia to make
up for the lost barrels, with steady Chinese buying which
flagged in December and multiple Indian and Indonesian buy
tenders boosting West African oil demand as Europe buys less.
* However, offers for Nigerian Egina crude slipped below
dated Brent plus $1, traders said, as vehicle mobility slipped
in Western Europe due to renewed lockdown measures.
* Congo-Brazzaville is set to export six cargoes of Djeno
crude in February, down from eight planned the previous month
when sales to China were slow.
* Offers for medium sweet Zafiro crude from Equatorial
Guinea were now around 10 cents below dated Brent while light
sweet Agbami crude had slipped at least 30 cents in the last
week on slow demand to less than dated Breny minus $1.

RELATED NEWS
* OPEC oil output rose for a sixth month in December, a
Reuters survey found, buoyed by further recovery in Libyan
production and smaller rises elsewhere in the group.
* U.S. crude oil stockpiles fell sharply last week while
fuel inventories rose, the Energy Information Administration
said on Wednesday, and 2020 came to a close with a sharp decline
in overall demand due to the coronavirus pandemic.

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