• Saturday, February 24, 2024
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West Africa Crude: High offers deter trade

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Trade in West African crude oil cargoes was slow on Monday, with traders saying that Angolan offers were too high to attract interest.

Initial offers for cargoes of November Angolan crude oil were substantially higher than corresponding levels for October barrels, traders said.
Although October supply moved relatively rapidly, traders said that underlying demand was not strong enough to justify stronger levels.

Traders were waiting for the final cargoes of the November Nigerian loading programme. Early indications show it will likely be shorter than for October as both Forcados and Qua Iboe grades were smaller.

The Angolan programme for November was also smaller than for October, but traders said that underlying weak demand would limit any strength.

Growth in China’s large factory sector probably stalled in September, adding to worries the economy could be at risk of a sharper slowdown unless Beijing rolls out more stimulus measures, a Reuters poll showed on Monday.

China is the largest consumer of Angolan oil.

NIGERIA

Erha will load four cargoes or 133,000 barrels per day in November, Bonga will export six cargoes or 190,000 barrels per day

Qua Iboe: There will be 11 cargoes exported in November according to a shipping list, lower than the usual 12 or 13. The most recent cargoes traded at around dated Brent plus $1.50.

ANGOLA

Some 13 cargoes of the 49 available had been bought via term contracts, traders said. Very few spot trades had been done.

Dalia November cargoes were offered at dated Brent minus $2.30, CLOV at minus $1.70, Hungo minus $1.60. These offers were at least $1 firmer than original offers for October vessels.

There was only one Girassol cargo due to load due to planned maintenance on the field, below the usual six.

Production is expected to return to normal for December export, a trader said.

ASIAN TENDERS

The results of an HPCL tender are expected on Tuesday, winners of a BPCL tender is expected on Thursday while a CPC tender result is expected by the end of next week, a trader said.

Petrovietnam will buy a Congolese Nkossa cargo for September loading, a trader said.