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W. Africa Crude-Nigerian crude diffs crash as freight rates bite

Published 11/10/2019, 17:09
Updated 11/10/2019, 17:10
W. Africa Crude-Nigerian crude diffs crash as freight rates bite

LONDON, Oct 11 (Reuters) - Differentials for Nigerian crude

oil grades continued to crash on Friday with the key grade being

shown at its lowest level since 2005 owing to still rising

freight rates as a result of U.S. sanctions on China's shipping

company COSCO.

* Phillips 66 tentatively chartered a supertanker to ship

U.S. crude from the U.S. Gulf Coast to South Korea for a record

$14 million this week, sources said Thursday. * Traders and ship brokers said that rates were still rising

beyond that level and that Bonny Light had been offered down to

around dated Brent flat, down from close to a $2.50 premium to

dated Brent last week.

* In the Platts window, Cepsa bought a cargo of Amenam at

dated Brent minus $1.55 cents a barrel from Total loading Nov.

10-11.

* Bonny Light and Qua Iboe typically trade no more than

$1-$1.10 a barrel above Amenam, further illustrating the market

collapse, a trader said.

* Forcados crashed earlier this week after Trafigura sold a

cargo $1 below an offer level on Monday.

* Cepsa also bought Bonny Light and Abo from Eni and

Escravos from Equinor, traders said. Price details did not

immediately emerge.

TENDERS

* India's IOC awarded its latest tender for west African

crude loading Nov. 24 to Dec. 3 to Total, Chevron and Shell.

* India's HPCL issued a buy tender for crude loading in the

first quarter of next year. Details will emerge next week.

RELATED NEWS

* Highly sought after types of oil best suited to making

cleaner shipping fuel are suddenly finding they are a tougher

sell for thirsty East Asian markets, traders say, in an

unintended consequence of U.S. sanctions on a Chinese shipping

fleet.

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