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W. Africa Crude-Angolan, Nigerian differentials continue to ebb

Published 08/10/2019, 17:37
Updated 08/10/2019, 17:40
© Reuters.  W. Africa Crude-Angolan, Nigerian differentials continue to ebb

LONDON, Oct 8 (Reuters) - Offering prices for Angolan and

Nigerian crude oil continued to ease from all-time highs on

Tuesday amid sluggish trading due to U.S. sanctions on a major

Chinese shipping fleet.

* Asking prices for Nigerian Bonny Light and Qua Iboe were a

little above a premium of $2.50 compared with dated Brent, down

from selling prices nearer to $2.70 achieved late in September.

* Still, sluggish crude oil prices have provided some

support in recent weeks to European gasoline refining margins

amid a post-summer seasonal lull.

* Long-haul rates to Asia have risen sharply, prompting

refiners to shed some cargoes, especially hurting the trade from

Congo and Angola which is most geared toward the long-haul

voyage to East Asia.

* The assessed freight level from West Africa to China shot

up from $2.89 a barrel last Tuesday to $4.89 on Monday,

according to U.S.-based ship broker McQuilling.

* The rates were nearly double Arabian Gulf rates of $2.85

but well short of those from the U.S. Gulf at $6.60.

* China's Unipec and Angolan state oil company Sonangol

continued to seek to sell several cargoes of Angolan oil at

reduced prices compared with last week.

* But price offerings for various grades, especially those

most suitable for refining into grades compliant with cleaner

marine shipping rules, continued to fluctuate by seller.

* Trafigura and Vitol had offered a cargo of Nigerian

ranging from dated Brent plus $2.70 to $4.70.

* Unipec had offered Angolan Dalia at $1.90 above dated

Brent but Sonangol offered Dalia at $2.80.

TENDERS

* Turkey's Tupras issued a buy tender for Bonny Light,

Forcados, Jones Creek or other similar grades for Nov. 25 to

Dec. 10, scheduled to close on Tuesday.

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

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

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