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W. Africa Crude-Differentials rise on reduced freight rates

Published 04/05/2020, 17:07
Updated 04/05/2020, 17:12

LONDON, May 4 (Reuters) - Offer and sale prices for West
African crude oil grades firmed further on Monday, despite
continued poor global demand due to a sharp fall in freight
rates continuing from last week.

* Price differentials have clawed back some ground from
historic lows brought on by the coronavirus pandemic, but few
spot prices emerged as traders kept them largely confidential,
seeking to capitalize on sudden price moves to scoop up deals.
* Some heavier Congolese and Angolan grades were especially
favoured, with signs pointing to an improvement in Chinese
refinery activity and lower rates for VLCC tankers.
* Perenco awarded a tender of Congolese Djeno crude loading
on June 11-12 to a Chinese buyer.
* Angola's Sonangol sold a cargo of Cabinda at or near its
asking price to a Chinese independent refiner late last week.
* Nigerian oil continued to face difficulties attracting
buyers, as European refiners continued to snap up oil closer to
home despite rising prices, such as Azeri and Algerian Saharan
blend, rather than risk later deliveries from West Africa.
* Traders noted significant cuts to Nigerian and Angolan
export plans for May and June in line with the OPEC+ producer
pact to rein in output and as a result of poor sales.
* Deferrals of some shipments from May to June and
variations in the volume of each cargo mean actual compliance
will be hard to gauge, they added, and can depend much on
whether prices recover.


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* Russia raised oil and gas condensate output in April to
46.45 million tonnes, or 11.35 million barrels per day (bpd),
from 11.29 million bpd in March, Interfax reported on Saturday,
before it makes cuts this month under the global supply pact.
* Oil executive Bill Kent was with fellow managers in the
Colorado board room of Resource Energy headquarters on April 20
when benchmark U.S. crude prices collapsed to minus $37 a
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