W. Africa Crude-Nigerian export programmes expected, buyers elusive

Published 23/04/2020, 16:50
© Reuters.

LONDON, April 23 (Reuters) - West African crude oil
exporters continued to grapple with record low prices and
depressed demand as buyers sought imports closer to home.

* Price differentials for physical crude improved slightly
for Mediterranean and Russian grades after the dated Brent
benchmark hit two-decade lows on Tuesday but rebounded.
* Traders said demand was still low but refiners had more
capacity than in other geographies, especially the United
States, and noted Chinese buying of Russian oil had picked up.
* The moves provided little clarity for West African oil
traders as offer prices continued to be largely held for private
discussions as the market held off on crude for later delivery.
* Nigeria's NNPC was meeting on Thursday to finalize
official selling prices for May and export volumes for June,
which traders expect to be reduced somewhat due to a producer
output cut pact this month.
* With at least three dozen unsold cargoes still available
for export in April and May, Nigerian oil faces one of the most
difficult paths to market with even key grade Bonny Light heard
to be offered at dated Brent minus $5.
* A tender by Indonesia's Pertamina for light crude for
delivery in the second half of the year was met in part by
Nigerian crude, two trade sources said, but details did not
emerge.
* Angolan oil for export in May had almost sold out as new
cargoes for June attracted little interest, with traders seeing
China as the only key buyer possibly interested in purchases.

RELATED NEWS
* China's second quarter fuel demand is forecast to rebound
from the first quarter, nearly matching year-ago levels, as
Beijing lifts curbs to contain its coronavirus outbreak and
resume the full output of the world's second-largest
economy. * OPEC's share of India's oil imports fell to 78.3% in
2019/20, its lowest in at least 19 years, data obtained from
industry and trade sources show, as refiners in Asia's third
biggest economy increased imports of U.S. and Mediterranean
grades.

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