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W. Africa Crude-Bonny export delays to carry into November

Published 20/09/2019, 16:59
© Reuters. W. Africa Crude-Bonny export delays to carry into November
SHEL
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LONDON, Sept 20 (Reuters) - The force majeure declared by

Shell RDSa.L on exports Bonny Light, a key grade of Nigerian

crude oil, is causing delays of a few days and which will

stretch into the beginning of November, according to preliminary

loading programmes that emerged on Friday.

NIGERIA

* Export schedules for November continued to emerge, with

volumes appearing to remain relatively steady for the top three

oil grades including Bonny Light, exports of which are set to

decrease by only 7,000 barrels per day (bpd) to 269,000.

* But the planned loading dates for each Bonny cargo were

shown to be delayed by about three days, beginning on Sept. 16

through to the first two cargoes in November.

* The original dates are even later than those Shell had

previously indicated when October programmes first circulated

last month.

* One of the two lines feeding the crude oil stream, the

Nembe Creek Trunk Line, was closed last week and operator Shell

declared force majeure on exports on Tuesday.

* Traders were unclear on the reasons for the shutdown,

though possible explanations ranged from unplanned maintenance

to contamination. Local operator Aiteo did not respond to a

request for comment.

* About 30 cargoes of Nigerian oil remain for export in

October, a fairly high backlog, though price offerings for the

Qua Iboe grade remain relatively high at a premium of about $3

to dated Brent.

* India's HPCL issued a buy tender for November-loading

crude. The tender closes next week.

ANGOLA

* As many as 10 cargoes of October-loading crude remain for

export, with comparable heavy grades such as Congolese Djeno

also not selling very fast in this month's trading cycle.

* Buyer sentiment for heavier West African oil remains

lukewarm amid steep market backwardation while some buyers see

price offers as inflated after high prices and strong sales last

month.

* Traders noted strong Saudi distillate demand after attacks

on key oil infrastructure but said the impact on physical crude

and products sales had yet to become clear.

RELATED NEWS

* State oil giant Saudi Aramco has switched crude grades and

pushed back crude and oil products deliveries to customers by

days after the attacks on its supply hub severely reduced its

light oil production and led to output cuts at its refineries.

* Aramco has booked at least 120,000 tonnes of naphtha for

September loading from Europe as it seeks to plug a supply gap

after the attacks on its oil facilities, industry sources said.

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