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W. Africa Crude-Margins start to favour lighter grades

Published 30/06/2020, 17:07
© Reuters.

LONDON, June 30 (Reuters) - Slow but steady draws to stocks
of crude and refined products in several key markets plus a
general uptick in road traffic is paving the way for the
recovery of lighter oil grades, but U.S. competition remains
stiff.

* Russia's share of Europe oil market under threat as
exports hit 20-year lows, as buyers shun high-priced sour oil
and turn in large part to lighter sweeter U.S. oil.
* Light oil flows from the United States to Europe were
close to 3 million tonnes in both May and June, just 1 million
tonnes lower than a record high in March. * Margins were not yet conducive for lighter Nigerian grades
to be widely sought in Europe at current prices, traders said,
but certain medium grades were benefiting from the shift.
* Bonny Light and Qua Iboe crude were being offered at
around dated Brent plus $1.
* Demand for heavier West African grades picked up in Asia
as middle distillate margins like gasoil showed signs of
recovery. NEWS
* OPEC oil output hit the lowest in two decades in June as
Saudi Arabia and other Gulf Arab members made larger cuts, a
Reuters survey found, pushing group compliance in a supply
reduction pact above 100% despite incomplete adherence by Iraq
and Nigeria. * OPEC and Russia will likely ease record oil production
cuts from August as global oil demand recovers and prices have
bounced back from their lows, four OPEC+ sources told Reuters.

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