Tuesday , 20 March 2018

W. Africa Crude-India buys more Nigerian oil

There are indications that India absorbed more Nigerian oil, but there were still close to 10 million barrels unsold for May loading.
Reuters indicated that Nigeria’s NNPC continued to allocate June cargoes, including Qua Iboe for China’s Unipec.
It maintained that interest in Angola’s oil was higher than expected, with China’s teapots still buying, but Sonangol had lowered its offer level for Dalia.
The agency said that U.S. crude stockpiles rose last week to a fresh record high last week as refinery runs fell.
It noted that Indian refiners purchased more Nigerian oil via tenders, but May loading cargoes lingered.
The agency said less than 10 million barrels of May loading were left for spot trade in May, but Erha programmes had not emerged.
It observed that traders said if they did not book ships to load the oil within the week, there could be issues securing vessels in time.
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The agency said that June loadings were at their lowest of the year due to the absence of Erha and Forcaodos.
It noted that Sonangol lowered its offer for Dalia to dated Brent minus $3.20 per barrel, but left Sangos at dated minus $1.80.
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 The significant narrowing of the forward curve has encouraged sellers to try to move cargoes more quickly, and largely eliminated interest in buying oil to store it.
It said that the demand in China remained strong, traders said, despite expectations that it would wilt due to maintenance.
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 The agency noted that China’s state planner raised retail fuel prices for the first time since January, which some said would encourage its refineries to process more oil.
“Glencore won a tender to supply India’s HPCL with crude oil with a cargo each of Qua Iboe and Okwuibome. Glencore also recently won a tender to supply MRPL with 600,000 barrels of Congolese Yombo.
“Qua Iboe and Agbami will also sail to India for BPCL after Chevron won a tender to supply the refiner.”
-          Libby George; Editing by Ruth Pitchford, Reuters




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