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W. Africa Crude-Angolan clearing amid strong margins

Published 01/08/2019, 16:37
Updated 01/08/2019, 16:40
© Reuters.  W. Africa Crude-Angolan clearing amid strong margins
SHEL
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LONDON, Aug 1 (Reuters) - Angolan crude oil continued to
sell briskly to China as higher product export quotas for
independent refiners pushed up demand.

ANGOLA
* Around 10 cargoes remain for September loading.
* Asian refining margins for middle distillates have
improved as Chinese independent refiners received new product
export quotas last month, driving up demand for September and
October arriving cargos.
* After three months of poor sales to top customer China,
most Angolan crude grades are being offered at prices of between
50 cents and a dollar above dated Brent more than for August.
* Girassol was heard to have been offered for a premium of
as much as of $3.00 compared to dated Brent, Dalia at almost
$2.70 and Cabinda above $1.50.
* Traders say offers may need to come if the cargos are to
fully clear and avoid another monthly overhang.


NIGERIA
* Differentials for August loading Bonny Light and Qua Iboe
crude were at well below a $2.00 premium to dated Brent, with a
cargo of Bonny heard to have sold for as low as $1.50.
* The overhang of August loading cargos has muted September
sales and encouraged buyers to seek discounts.
* Traders said the declaration of force majeure at Libya's
main oilfield may provide a boon to Nigerian crude, sales of
which have suffered amid a glut of U.S. and North Sea grades.


TENDERS
* Indonesia's Pertamina has issued a tender for 1.8 million
barrels for delivery to Teluk Semangka between October 1-5 and
for two 950,000 barrel cargoes for delivery to Balikpapan
between October 8-15 and October 22-29, set to close on Friday.


RELATED NEWS
* One of Nigeria's main oil and gas trade unions on Thursday
threatened to take industrial action over a staffing dispute
with Chevron. * Royal Dutch Shell's RDSa.L second-quarter profit slumped
to a 30-month low on weaker gas prices and refining margins,
denting a steady recovery in recent years and sending the
Anglo-Dutch energy company's shares down 5%.

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