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W. Africa Crude-Buyers elusive amid weak margins

Published 12/06/2019, 17:17
Updated 12/06/2019, 17:20
W. Africa Crude-Buyers elusive amid weak margins

LONDON, June 12 (Reuters) - Angolan and Nigerian grades have
undergone substantial markdowns but backwardation and weak
refining margins have made for slower-than-usual sales, with
fears for global crude demand growth also casting a shadow.

ANGOLA
* Iran has set July prices for crude to its Asian term
customers at the largest discounts in more than a decade against
similar Saudi grades as it seeks preserve any advantage it can
for its heavier crude while under U.S. sanctions. * Fewer than 10 cargoes of Angolan crude remain for July
loading and the country may be set for its first overhang this
year with August-loading programs expected early next week.
* Weak Asian margins and backwardation have eaten into local
demand as reduced Chinese crude imports raise concerns about the
global economy and demand growth.
* Concerns over Asian demand convinced sellers to
drastically reduce prices this month as optimism over the
relative scarcity of heavier grades faded.
* An easing of the Brent-Dubai spread DUB-EFS-1M to about
$3.00 from $4.30 may provide some support to Atlantic Basin
grades, however.


NIGERIA
* Exxon was heard to have struggled to sell cargoes of major
grade Qua Iboe, differentials of which settled at around $2.50.
* Weak European gasoline margins, a profusion of U.S. crude
increasingly reaching traditional buyer strongholds in southeast
Asia and weak margins in Asia are all hurting demand.
* Shell was chartered to send a VLCC of Nigerian crude to
northwest Europe for mid-July arrival, the second vessel of that
size carrying Nigerian sent to the region this year.


TENDERS
* The focus of world oil markets has switched from
supply-side risks like OPEC production cuts and U.S. sanctions
against producers Iran and Venezuela, to concerns of slowing
consumption amid fears of a global recession, analysts said.
* Nigeria's economy is expected to grow 2.7% this year,
President Muhammadu Buhari said on Wednesday, in his first
public speech since his inauguration for a second term last
month.

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