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W. Africa Crude-Chinese buying abating, unlikely to rebound quickly

Published 18/06/2020, 17:15
© Reuters.
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LONDON, June 18 (Reuters) - Reduced Chinese buying due to
shipping and refining obstacles have kept purchases of Angolan
oil slow, as independent Chinese refiners face slimmer import
quotas.

* Around five cargoes of July-loading Angolan crude oil have
yet to be sold, with several factors weighing on Chinese buying.
* Port congestion is delaying offloading of imported crude
oil, dampening demand for new orders.
* Low margins globally, abundant stocks and used-up import
quotas have undercut Chinese demand, with the next batch of
quotas for independent refineries likely to be smaller than
previously, traders said.
* Up to two dozen cargoes of Nigerian crude have yet to be
sold for July, yet Indian tenders continue to persistently soak
up Nigerian supply.

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* An OPEC+ ministerial panel met on Thursday to review
record oil supply cuts and plans by countries such as Iraq and
Kazakhstan to improve compliance with their output quotas in a
bid to support oil prices battered by the coronavirus crisis.
* State oil giant Saudi Aramco 2222.SE started laying off
hundreds of employees this month, two sources familiar with the
matter said, as global energy companies reduce their workforces
in response to the coronavirus crisis.

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