W. Africa Crude-Exports of main Nigerian grades to ease amid big overhang

Published 19/07/2019, 16:27
© Reuters.  W. Africa Crude-Exports of main Nigerian grades to ease amid big overhang

LONDON, July 19 (Reuters) - Nigeria will export slightly
less crude from its four main oil streams in September,
according to preliminary loading programmes seen by traders,
while a large overhang of at least 25 cargoes remains from
August.

NIGERIA
* Exports of Bonny Light, Bonga, Qua Iboe and Forcados crude
are set to reach 878,000 barrels per day (bpd) in September,
down slightly from 954,000 bpd in August.
* Nigeria's state oil company NNPC lowered the August price
premiums for Bonny Light crude to 163 cents per barrel from 204
cents in July and Qua Iboe to 157 cents from 215 cents the month
before, in a sign demand is seen to have eased.
* Between 25-40 cargoes remained for August loading, as some
oil majors appeared set to absorb excess cargoes into their own
refining systems.
* The end to various refinery closures due to maintenance
could provide a boost to sales.
* Price offerings for top grades Qua Iboe and Bonny Light
were heard to stand a little over $2.00 above dated Brent.
* The Forcados stream was heard to be having a particularly
difficult month as the new offshore Egina field has attracted
more attention from buyers.

ANGOLA
* Angolan state oil company Sonangol was close to finalising
term allocations for September cargoes, and it remained unclear
which grades they would seek to sell as spot cargoes.
* Sluggish Chinese buying slowed sales for the July and
August loading periods.
* Improved East Asian margins and expected stock builds may
provide a boost to September buying, traders said.

TENDERS
* Taiwanese refiner CPC Corp has issued a tender for a West
African grade set to close next week, though further details did
not emerge.
* Indonesia's Pertamina has issued a tender for one cargo
per month for October-December delivery, set to close on Monday.


RELATED NEWS
* A June 21 fire and explosion set to permanently close the
biggest oil refinery on the U.S. East Coast has shaken markets
as far away as the North Sea and West Africa, leaving millions
of barrels of unsold oil in need of a new home. * Chinese oil refiners want changes to tax laws on the
consumption and sale of fuel oil in order to start producing
low-sulphur marine fuel when new global clean fuel rules start
in 2020, four executives at Chinese oil companies said this
week.

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