W. Africa Crude-Nigerian oil struggles to attract European interest

Published 31/07/2020, 17:22
© Reuters.

LONDON, July 31 (Reuters) - Nigerian oil continued to face
an uphill battle into European markets as new Chinese export
quotas raised hopes for sellers of Angolan crude.

NIGERIA
* Poor refining margins and discounted barrels from
competing regions like the North Sea and the United States are
extending Nigerian oil's poor selling streak in Europe.
* The trend is not as severe as earlier in the pandemic,
traders said, but only a small handful of cargoes have sold in
the recent week to Mediterranean refiners.
* Traders awaited the result of a tender for sweet crude by
Indonesia's Pertamina valid until early next week, but the
company's demand is likely well covered by oil in floating
storage arranged months ago.
* Indian state oil companies are set to provide the only
consistent market for Nigerian crude, though possible run-cuts
could curtail future buying.
* Nigeria - along with Iraq - made no further oil output
curbs in July, a Reuters survey found. * China granted non-state crude oil imports licences to
three Shandong-based companies in eastern China, encouraging
sellers of Angolan and Congolese oil. * Offers for crude by Angola's Sonangol remained steady
despite some reductions by other sellers.

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