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W. Africa Crude-Asian demand set to pick up on margins

Published 23/07/2019, 16:35
© Reuters.  W. Africa Crude-Asian demand set to pick up on margins

LONDON, July 23 (Reuters) - Asian refining margins improved
sharply on Tuesday, in a boon for Angolan oil, which has
suffered two consecutive months of poor sales to its main
customer China.

ANGOLA
* Asian refining margins for gasoil climbed to their highest
in eight months as some regional refinery issues and run cuts
tightened supplies. * The spike this week coincides with likely higher demand
for heavier Angolan crudes ahead of IMO 2020 regulations.
* Chinese buyers said purchases for August loading cargoes
had not picked up significantly from July, when freight rates,
backwardation and poor margins sapped demand.
* Preliminary tradeflow data from Refinitiv Eikon indicated
that Angolan exports to China for July were their lowest in many
years at 635,000 barrels per day.

NIGERIA
* A glut of Atlantic basin light sweet crude has dealt
Nigerian crude one of its most difficult months of the year,
with differentials progressively falling.
* End of July or early August loading cargoes of main grades
Bonny Light and Qua Iboe were being sold for lows of around $2
above dated Brent.
* Over 20 cargoes remained for August loading

RELATED NEWS
* Nigeria's state oil company has secured $3.15 billion from
Sterling Oil Exploration and Energy Production Company Limited
to develop oil mining licence 13, it said in a statement on
Twitter on Tuesday. * The United States has sanctioned Chinese state-run energy
company Zhuhai Zhenrong Co Ltd for allegedly violating
restrictions imposed on Iran's oil sector, U.S. Secretary of
State Mike Pompeo said in a speech on Monday.

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