W. Africa Crude-Nigerian price offers rebound as freight costs ease

Published 29/10/2019, 18:50
W. Africa Crude-Nigerian price offers rebound as freight costs ease

LONDON, Oct 29 (Reuters) - Sellers offered Nigerian crude

oil at higher prices on Tuesday, rebounding towards the rates of

previous months as freight costs eased and European demand

remained robust.

* Nigerian Bonny Light crude was being offered at a premium

to dated Brent of around $2, far higher than recent offerings of

$1.40 but below ambitious asking prices of $2.50 in September.

* U.S. sanctions on a Chinese shipping fleet led to the

highest freight rates in four years, upending the oil market.

* Freight costs for a Suezmax from the Bonny Light terminal

to Rotterdam were projected at $2.68 a barrel on Monday by

Refinitiv, down from highs above $5 two weeks before but still

well above norms of this year at or below $2.

* Nigerian Egina continued to be offered at higher prices,

in excess of $4 above dated Brent amid intense interest around

the transition to low sulphur shipping fuel.

* Total was likely awarded an HPCL tender with a VLCC of

Nigerian Qua Iboe crude oil loading December 1-10.

* Up to 15 cargoes of Nigerian crude remained for export in

November along with cargoes from other West African exporting

countries.

* Angola sold out its November programme amid slower than

normal trading due to the freight crisis.

RELATED NEWS

* Chinese oil trader Unipec has restarted using tankers

owned by state-owned shipping group COSCO after the United

States eased sanctions temporarily on the Chinese state-owned

shipping group, trade sources said on Tuesday. * South Sudan plans to offer 14 oil blocks to exploration

companies in a licensing round by the first quarter of 2020, its

oil minister said on Tuesday, switching from its previous method

of direct negotiations with explorers.

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