W. Africa Crude-Bonny Light force majeure lifted, Angolan diffs tumble

Published 31/01/2020, 17:44
© Reuters.  W. Africa Crude-Bonny Light force majeure lifted, Angolan diffs tumble

LONDON, Jan 31 (Reuters) - Royal Dutch Shell lifted force

majeure on exports of Nigerian Bonny Light crude as

differentials for heavier West African grades continued to

suffer amid plunging jet fuel cracks.

NIGERIA

* Force majeure had been in place on Bonny Light exports for

over ten days, in the latest interruption to the troubled crude

stream which has vexed traders.

* Offers for most Nigerian crude grades were down between 50

cents and $1 compared to last week as buyers have balked at high

prices despite widespread outages to competing Libyan grades.

* Offers for Bonny Light crude were under dated Brent plus

$3.50 and for Qua Iboe under $3.

* Urals and North Sea differentials firmed this week,

lending some support to Nigerian grades.

ANGOLA

* Equinor sold a cargo of Angolan Dalia crude for loading on

March 23-24 on the Platts window for dated Brent plus $1.10 to

Vitol, traders said, a dramatically low price for a grade which

regularly traded last year around dated Brent plus $2.50.

* Asian jet fuel margins posted their fourth straight weekly

decline on Friday, as aviation demand weakened amid worries over

a new virus epidemic emanating from China. MDIS/A

* Around 18 cargoes of Angolan crude remain to be sold in

March, more than half of the spot cargoes that were available

for sale this trading cycle as sales remain sluggish.

* None of the 7 cargoes of Congolose Djeno crude - like

Dalia, once much-desired for Asian middle distillate refining -

had yet sold, traders said.

TENDERS

* India's HPCL closed bidding for crude cargoes loading

March 10-20 on Friday.

* Indonesia's Pertamina issued a buy tender for crude for

April 15-17 or 8-10 delivery depending on the port, with results

expected Feb. 3.

RELATED NEWS

* A coronavirus outbreak in China could cut oil demand by

over 250,000 barrels per day (bpd), in the first quarter of this

year and drag on oil prices already beleaguered by oversupply,

analysts and traders say. * Asia's crude oil imports from the United States are set to

rebound in May after freight rates for ships to carry U.S. crude

to north Asia fell by 27% from a week earlier, trade and

shipping sources said on Friday.

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