The backlog of Angolan crude oil cargoes for July export had shrunk substantially by Friday after a sharp drop-off in differentials lured buyers who had been sitting on the sidelines.
There were around 15 of 51 cargoes left, around 10 less than two days previously.
Sales for July have been much slower than for earlier months this year, as traders said that initial offers from Sonangol, the Angolan state oil company, had been unrealistically high.
But differentials have since slid to their lowest level in around three years, attracting Asian buyers.
However sales of Nigerian oil stayed slow, with grades other than the benchmark Qua Iboe being shunned by buyers for now.
Around half Nigeria’s programme for July loading was still available for purchase, a trader said.
“Europe is the only major home for Nigerian oil, and (refining) margins and cracks are low,” a trader said. “I’d expect a correction on Nigerian differentials too.”
ANGOLA
Girassol BFO-GIR was assessed by one trader on Friday at a discount of around 25 cents to dated Brent.
Cabinda BFO-CAB: Unipec bought a July 6-7 loading cargo at dated Brent minus $1.20, a trader said. That was its lowest differential since March 2011, according to Reuters data.
NIGERIA
About half of the month’s cargoes are available for sale, a trader said.
Qua Iboe: Assessed unchanged at about dated Brent plus $2.70. This was about 20 cents below last week. Most of the 13 cargoes had found buyers, traders said.
Other grades were slower to sell, and their differentials have slipped back. Bonny Light was assessed at around dated Brent plus $2.25.
Forcados: Traders said that this grade was very slow to sell in the spot market.
ASIAN TENDERS
Indian Oil Corp bought two VLCCs. One containing Kissanje and Agbami from Chevron, and the other Murban from Shell, traders said.
Pertamina is due to launch on Thursday or Friday a tender for cargoes to load in early August, a trader said.
Reuters
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