W. Africa Crude-Nigeria, Angolan diffs jump on cheap freight

Published 06/05/2020, 18:31
Updated 06/05/2020, 18:36

LONDON, May 6 (Reuters) - Nigerian and Angolan crude
differentials jumped on Wednesday, with sellers offering cargoes
several dollars above recent levels as cheap freight rates
provide a boost.

* Exxon Mobil was offering a cargo of Angolan Girassol at
around dated Brent plus 75 cents to $1 a barrel, one trader
said. Nigerian Qua Iboe was also shown at similar levels.
* Eni was said to have sold a cargo of Angolan Olombendo via
tender. Buyer details did not immediately emerge.
* Nigerian and Angolan grades were selling at around $7 to
$8 below dated Brent last month and have rebounded swiftly.
* The freight rate for a VLCC from the Middle East or West
Africa has sunk to about World Scale 60, down from over 100 last
week, according to shipping fixtures and data from Refinitiv
Eikon.
* "Between now and month ago, you have freight dropping from
about $8 a barrel to just $3 a barrel to Asia but at the same
time the contango is not as advantageous," one trader said.
* However with lockdowns easing, refiners in other regions
are also looking to pick up more June cargoes which is also
boosting prices.

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