W. Africa Crude-Sonangol sells out, Nigerian glut mounts

Published 15/01/2020, 17:58
© Reuters.  W. Africa Crude-Sonangol sells out, Nigerian glut mounts

LONDON, Jan 15 (Reuters) - Angolan state oil company

Sonangol finally sold out of its February loading cargoes while

Nigerian crude piled up amid sluggish buyer interest.

* Sonangol sold its cargo of Gindungo at around dated Brent

plus $1 and Hungo at below dated Brent plus $1.40.

* The sales reduce to about five the number of Angolan

cargoes still available for export in February as March

preliminary programmes are expected Thursday afternoon or early

Friday.

* One of the largest gluts in months has developed for

Nigerian crude, with traders estimating around 35-40 cargoes

remaining for sale, with some lingering for export in January.

* Persistently high offer prices were not convincing

potential buyers, and while freight rates have begun to ease

somewhat sales have remained muted.

* European buyers have barely resumed post-holiday buying of

Nigerian crude and largely held off on booking West

African-Europe suezmax tankers as high freight rates lingered.

* Even grades that sold at record high prices for much of

last year have suffered, with one trader saying heavy sweet

Congolese Djeno was now being offered at dated Brent negative.

* India's IOC has two tenders closing this week, with

results expected on Thursday. One is for cargoes loading from

end-February to March 3. The other is for loading over March

11-20.

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cutting its long-term oil price assumptions by $10 to $65 a

barrel, a downgrade to reserves in Ghana and disappointing

exploration wells, the company said on Wednesday. * French energy major Total has postponed the restart of a

distillation unit at its 220,000-barrel-per-day Donges refinery

until Friday due to a nationwide strike over planned pensions

reform, the company said on Wednesday.

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