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W. Africa Crude-Nigeria kidnappings raise ship insurance jitters, offers ease

Published 05/12/2019, 18:05
Updated 05/12/2019, 18:10
© Reuters.  W. Africa Crude-Nigeria kidnappings raise ship insurance jitters, offers ease

LONDON, Dec 5 (Reuters) - The crew of an oil supertanker was

kidnapped off the coast of Nigeria, marking an uptick in piracy

in the region that shipbrokers and traders fear will increase

insurance premiums.

* The VLCC Nave Constellation was attacked 77 nautical miles

off Bonny Island on Tuesday and 18 Indians and one Turk from the

crew were seized. * Traders said a rash of kidnappings raised uncertainty

about shipping prices, citing concerns that insurance premiums

on West African shipments could be raised.

* Offers for both heavier and lighter West African crude

grades continued to ease slightly as the monthly trading cycle

passes its halfway point.

* Sonangol's cargo of Dalia still sought a buyer at a

premium compared to dated Brent of $3.00, while Nigerian light

cargoes sold briskly with a cargo of Bonny Light sold just below

$3.50.

* At least a dozen cargoes of Angolan crude were still

available from the January programme, in relatively swift

trading ahead of new global shipping rules.

* Uruguay's ANCAP has two tenders running for a cargo of

crude each closing this week.

RELATED NEWS

* Angolan oil company Sonangol has terminated a contract

with Hong Kong-based consortium United Shine to build the

Cabinda Refinery but plans to go ahead with other investors.

* Angola plans to raise its oil production from 1.39 million

barrels per day (bpd) to 1.44 million bpd in 2020, the petroleum

minister said. * Sources told Reuters that OPEC was seeking to increase

production cuts by the group and its allies by Russia by more

than 400,000 barrels per day (bpd) from their current level of

1.2 million bpd.

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