W. Africa Crude-Trading muted as freight steady, contango narrows

Published 01/06/2020, 17:05
Updated 01/06/2020, 17:06

LONDON, June 1 (Reuters) - Little trading or price movement
occurred on Monday as faster buying earlier in the trading cycle
lapsed into a lull.

* Offers for West African grades, even ones which had
recovered significantly in previous weeks, remained stuck at
current levels.
* BP last offered a cargo of Angolan Girassol at dated Brent
plus $3.30.
* Freight rates from the region to eastern markets hovered
around the lowest levels since the outbreak of the coronavirus
outside China in March.
* Contango structure in the crude futures market also
narrowed to the lowest levels since around the same time,
limiting the incentive for buyers to snatch up and store
physical crude.
* Analysts and traders still predict the structure may last
for months, making certain small draws on floating storage in
China and Singapore an exception to the trend. * An Eastern customer said the abundance of supply, in the
form of unsold crude for later delivery and oil already in
floating storage provided more buying options.

RELATED NEWS
* China's refiners have bought a quarter of Russia's Urals
oil exports planned for June in the Baltic despite record high
premiums for the grade due to a lack of sour barrels as result
of the OPEC+ output cuts, traders said and shipping data showed.
* OPEC and Russia are moving closer to a compromise on
extending current oil output cuts and are discussing a proposal
to roll over supply curbs for one to two months, three OPEC+
sources told Reuters on Monday.

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