W. Africa Crude-Diffs resist futures plunge as sellers stay confident

Published 10/03/2020, 18:26
Updated 10/03/2020, 18:27
© Reuters.  W. Africa Crude-Diffs resist futures plunge as sellers stay confident

LONDON, March 10 (Reuters) - Spot prices for West African

oil cargoes resisted a plunge in crude futures as sellers bet on

relatively stable demand.

* Price offers for Angolan and Nigerian crude have edged

down since major producers failed to agree on a deal to extend

output curbs last week, but only marginally.

* "We see a slight impact but not that much on spot prices,

and sometimes even see stronger differentials when futures go

lower," one major West African seller said.

* Angolan state oil company Sonangol has just about sold all

of its cargoes ahead of new programmes expected next week, a

faster selling pace than in the previous two months.

* Lighter Nigerian crude grades face more short-term

pressure as prices for competing Saudi oil varieties are sharply

marked down, but Qua Iboe and Bonny Light crude is still being

offered at above premiums of $2 compared to dated Brent.

* One seller noted that the anticipated damage to the U.S.

shale oil industry by lower prices could provide some long term

relief and less competition in key Asian markets.

* Tanker rates to ship oil in very large crude carriers

(VLCCs) are surging as oil traders hunt for ships to store cheap

oil in as they take advantage of a 25% plunge in prices on

Monday amid a price war between top oil producers Saudi Arabia

and Russia.

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