W. Africa Crude-Glut of light sweet crude lowers Nigerian prompt prices

Published 24/07/2019, 17:20
© Reuters.  W. Africa Crude-Glut of light sweet crude lowers Nigerian prompt prices

LONDON, July 24 (Reuters) - Nigerian differentials continued
to slide amid a steep excess of August-loading barrels, while
Angolan crude appeared set for an improvement in sales to China
on new quotas for state buyers.

NIGERIA
* Prompt cargoes for loading at the end of July or early
August were selling for especially low prices amid a plethora of
light sweet crude in the Atlantic Basin.
* Exxon was heard to be seeking to sell a cargo of Bonny
Light, while August-loading Qua Iboe and Bonny Light were heard
to have sold for as little as below a $2 premium compared to
dated Brent.
* August-loading Forcados crude was also struggling to sell,
amid an especially large export programme for the month and
heightened interest in the new offshore Egina stream.
* At least 20 cargoes remained for August loading.
* Nigeria's NNPC plans to renew its contract for crude sales
with Indonesia's Pertamina which expired last year, part of
moves to boost exports, it said on Tuesday. * Several factors appear to be favouring a pick up in
Chinese demand, traders said, after June through August trading
has been markedly down compared to earlier months.
* Stocks of Iranian oil from steep imports earlier in the
year appear to be depleted, margins for key middle distillates
are rising ahead of new marine fuel rules next year, favouring
Angola's heavier crudes while freight rates have eased.
* China raised total export quotas for refined oil products
to 48.15 million tonnes in 2019, traders said, up from 43
million tonnes through the same period last year. * Astron Energy in South Africa has issued a tender for a
West African grade delivering to Saldanha port on Sept. 24-26
set to close on Thursday.

RELATED NEWS
* Nigeria's state oil firm said it had suspended cash call
repayments to Eni for three months, and did not plan to renew
some of the Italian firm's asset licences. * OPEC has shifted the goal posts for assessing an overhang
in oil inventories, giving the group more room to prolong
production cuts, while analysts warn the move will offer a
distorted view of market conditions.

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