W. Africa Crude-Spot trade grinds to a halt as freight rates skyrocket

Published 10/10/2019, 17:11
Updated 10/10/2019, 17:20
W. Africa Crude-Spot trade grinds to a halt as freight rates skyrocket

LONDON, Oct 10 (Reuters) - West African grades were under

strong downward pressure on Thursday with little on offer as

high freight rates, a result of U.S. sanctions on Chinese

shipping firm COSCO, spooked buyers.

* In the Platts window in yesterday's session, Trafigura

sold a 950,000 barrel cargo of Forcados to Total at dated Brent

plus $1.70 a barrel loading Nov. 12-13.

* The deal was $1 lower than Trafigura's offer for the same

grade on Monday.

* "It's hardly worth trying to offer something now if you're

showing dated Brent plus $6 or $7 including freight, it's just

getting silly," a trader said.

* Angola's state oil firm lowered its offer level for its

cargo of Cabinda to dated Brent plus $2.50 from over $3 earlier

this week and Dalia was being shown at dated Brent plus $2.20.

TENDERS

* India's IOC issued a new tender for west African crude

loading Nov. 24 to Dec. 3 closing later this week.

RELATED NEWS

* Nigeria is seeking $62 billion from oil companies under

regulations that allow the government to revisit revenue-sharing

deals on petroleum sales if crude prices exceed $20 a barrel,

the attorney general told Reuters on Thursday.

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