Black Friday Sale! Save huge on InvestingProGet up to 60% off

W. Africa Crude-Libyan outage may ease Nigerian oversupply

Published 02/08/2019, 15:26
Updated 02/08/2019, 15:30
© Reuters.  W. Africa Crude-Libyan outage may ease Nigerian oversupply
PETR4
-

LONDON, Aug 2 (Reuters) - An excess of prompt-loading
Nigerian cargoes may ease as a result of the declaration of
force majeure on exports from Libya's biggest oilfield on
Thursday, traders said.


NIGERIA
* A sizeable overhang of August loading cargoes has built up
amid sluggish demand and plenty of competition from North Sea
barrels, interest for which has also been low in recent days.
* Libya's 290,000 barrels per day (bpd) shut down, putting a
quarter of the country's oil production offline. * Buyers are holding out for considerable markdowns on
prompt cargos, dampening enthusiasm for later loading barrels.
* For example, bids for a cargo of Forcados loading at the
beginning of September are well below a $2 premium compared to
dated Brent, while a later one is being offered for £2.50.
* Differentials for August loading Bonny Light and Qua Iboe
crude were at well below a $2.00 premium to dated Brent.

ANGOLA
* Fewer than 10 cargoes remain for September loading.
* 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 on
good margins for middle distillates and residual fuels.
* Despite possibly cutting its official selling prices
(OSPs) for lighter crudes, Saudi Arabia may leave prices for
heavier grades unchanged as strong fuel oil margins in Asia also
buoy demand for some Angolan varieties. TENDERS
* Indonesia's Pertamina has issued a tender for 1.8 million
barrels for delivery to Teluk Semangka between Oct. 1-5 and for
two 950,000 barrel cargoes for delivery to Balikpapan between
Oct. 8-15 and Oct. 22-29, set to close on Friday.


RELATED NEWS
* Brazilian state-run oil firm Petroleo Brasileiro SA
PETR4.SA produced 2.76 billion barrels of oil equivalent per
day (boepd) in July, it said in a presentation on Friday, a
strong increase over previous months. * Oil prices slumped on Thursday as the United States
threatened more tariffs on China and traders concluded the
probability of a recession sapping oil consumption had
increased.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2024 - Fusion Media Limited. All Rights Reserved.