W. Africa Crude-Offers head even lower as glut swells

Published 17/04/2020, 16:42
© Reuters.

LONDON, April 17 (Reuters) - Sellers reduced offer prices
again as June export volumes were set to add yet more oil to
scores of unsold cargoes lingering from the region amid
persistently low demand.

* A cargo of Ghanaian Sankofa and one of Angolan Cabinda
were being offered at record lows of dated Brent minus $6, a
trade source said, but the identity of the seller did not
immediately emerge.
* Offers of Nigerian Bonny Light crude plumbed around dated
Brent minus $4 as at least 40 cargoes remained for export in
April in May.
* Market participants expect official selling prices for
May, anticipated at the beginning of the week, will likely be
even lower than lows achieved in April.
* Despite contango market structure, which otherwise could
make long-haul voyages from West African attractive, buyers and
sellers both had little way of gauging value for long journeys.
* "We are prioritising equity and term barrels, European
refineries are doing the same," one consistent buyer said.
* Term allocations for Angola's June export programme were
still being finalised.

RELATED NEWS
* China's daily crude oil throughput in March sank to a
15-month low with state refiners maintaining deep output cuts as
the coronavirus pandemic erodes demand, but there are some signs
of recovery as the country begins to ease virus-related curbs.
* Traders are storing an estimated record 160 million
barrels of oil on ships - double the level from two weeks ago as
they seek to tackle a glut of stocks created by a slide in
global demand from the coronavirus, shipping sources say.

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