W. Africa Crude-Chinese buying lull continues, lighter grades in focus

Published 01/07/2020, 17:13
Updated 01/07/2020, 17:18
© Reuters.

LONDON, July 1 (Reuters) - Unusually slow Chinese buying has
led to slow sales of heavier West African grades, while a broad
switch in desired crude slates from sour to sweet crudes is
boosting Nigerian oil.

* State Chinese buyers continue to hold off on buying
Angolan crude due to vast domestic stocks, with independent
refiners providing little relief.
* Traders cited a lack of reduction to prices for
August-loading barrels, which have been set high due to modest
improvements to refining margins of some middle distillates.
* Iraq will reduce crude oil exports from its southern
terminals by about half in July, mainly its Basra Light flows.
* The planned exports will go mostly to Asia, making a
dearth of sour oil in Europe even more extreme and convincing
refiners to switch to lighter, sweeter grades.
* The shift is due to boost Nigerian grades, but prices
remained steady, while vast volumes of relatively cheap light
U.S. oil continues to dominate European markets.

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* Tens of millions of barrels of crude and oil products
stored on tankers at sea due to the coronavirus crisis are being
sold, in a sign fuel demand is recovering as lockdowns ease,
shipping sources say. * India's fuel consumption rose in June compared with May,
continuing with a gradual recovery as industrial and transport
sectors reopened after a stringent lockdown, a government
statement issued on Wednesday said.

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