Angolan crude oil price differentials slipped further on Monday, pressured by limited demand from large consumers such as China and ample supplies.
Similar factors have also weakened the Nigerian market. Qua Iboe, Nigeria’s largest crude stream, was assessed at close to its lowest premium to dated Brent in two years.
“It’s the same old story,” said a trader. “Margins are not very good and there’s lots of crude around.”
Weakening price differentials for crude in other regions, such as the North Sea, have also hit differentials in the West African market, say traders.
ANGOLA
Offers were coming down further on Monday, suggesting a market still seeing limited demand.
Cabinda: Valued at below dated Brent minus $2.00, a trader said, down from the offer level of dated minus $1.75.
Girassol: Offered at dated minus 75 cents on Monday, 10 cents weaker than late last week.
NIGERIA
Qua Iboe: Cargoes are on offer at dated plus $1.90, a trader said, in line with Friday. The grade was assessed at dated plus $1.30-$1.50, slightly up from Friday’s range but still close to the lowest since July 2012, Reuters data showed.
Royal Dutch Shell has yet to lift a force majeure on output from its EA field that was declared in June.
ASIAN TENDERS
Indian Oil Corp is running a buying tender, which a trader expected to absorb September barrels.
Reuters
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