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W. Africa Crude-Freight throttles market as buyers hold back

Published 14/10/2019, 16:06
W. Africa Crude-Freight throttles market as buyers hold back
ENI
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LONDON, Oct 14 (Reuters) - Differentials for west African

grades continued to be under pressure on Monday as freight rates

continued to rise due to U.S. sanctions on subsidiaries of

China's shipping firm COSCO.

* Adding to the tightness were long queues of ships waiting

to be fitted with scrubbers, units to remove sulphur from fuel,

ahead of new maritime regulations to tackle pollution coming

into effect in January.

* Vitol offered a prompt cargo of Forcados in the window at

dated Brent plus $4.85 on a delivered basis Rotterdam or Lavera

during Oct. 20-25.

* Unipec offered four cargoes on Friday but failed to find

buyers.

* "With freight people just look for the bids rather than

offer into the abyss. Freight was below $2 west Africa to Europe

two weeks ago now it's $5-6. Lots of grades will go negative

(below dated)," a trading source said.

* Angola's state firm Sonangol still has a cargo of Dalia

and Cabinda on offer. It had lowered its offer levels last week

but this failed to entice buyers. The firm was now asking for

bids based on its offer of Cabinda at dated Brent plus $2.50

from over $3 and Dalia at dated Brent plus $2.20.

* Angola's December loading programme was expected to emerge

by mid-week.

TENDERS

* India's HPCL issued a buy tender for 3 VLCCs of crude

loading in the first quarter of next year closing on Oct. 18.

RELATED NEWS

* Saudi Energy Minister Prince Abdulaziz bin Salman said on

Monday that the country's oil output will recover to 9.86

million barrels per day in October and November, after it

declined last month following attacks on its energy

installations. * Italian oil and gas company Eni ENI.MI expects to boost

gasoline production at Angola's Luanda refinery to 470,000

tonnes within two years from the current 110,000 tonnes a year,

a senior company official said on Friday.

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