W. Africa Crude-Offers for light Nigerian crude stay high

Published 24/09/2019, 17:14
© Reuters. W. Africa Crude-Offers for light Nigerian crude stay high

LONDON, Sept 24 (Reuters) - Energy majors have yet to

significantly reduce price offers for Nigerian crude despite

sliding gasoline refining margins, traders said, possibly due to

hopes for demand for gasoline from Saudi Arabia following

attacks on its oil infrastructure.

NIGERIA

* A significant uptick of 500,000 barrels per day (bpd) of

gasoline has been scheduled to travel from Europe to the Middle

East over the last week.

* The unusual flows indicate Saudi Arabia is looking to

replenish oil products affected by a crippling attack on two of

its main energy facilities Sept. 14.

* At least one cargo of Qua Iboe continued to be offered at

a premium of about $3.00 to dated Brent, likely by Exxon.

* Despite a supply glut of at least two dozen cargoes set to

be exported in October, energy majors have not significantly

reduced offers, leading to sluggish trading.

* Nigeria's Bonga crude oil stream will load five cargoes in

November, down from six in October.

ANGOLA

* At least five cargoes of Angolan crude remain for export

in October.

* A tender by Taiwan's CPC for sweet crude was awarded in

part to an Angolan grade but no further details emerged.

* Freight rates and backwardation continued to weigh on

demand for West African grades both in Europe and Asia.

* Still, Asian demand for medium sweet oil such as certain

Angolan grades may stand to benefit from the Saudi oil attacks

and looming new shipping regulations.

* According to consultancy FGE, buying by Chinese

independent refiners has cooled and will lead to a slowdown in

demand starting in late November.

RELATED NEWS

* Nigeria will do "whatever it takes" to protect its economy

from a more than $9 billion arbitration claim over a failed gas

project, policymakers said, but the government will not rule out

settling with a firm registered in the British Virgin Islands.

* Saudi Aramco is buying oil originating in neighbouring

countries to meet its supply obligations to foreign refineries,

sources familiar with the matter told Reuters, after the attacks

on its installations.

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