Signal that the oil market is improving comes as Angolan crude oil continues to sell well and traders say interest in Nigerian crude was set to rise but the country faces pressure from fellow producers to rein in output.
Angola has cut the number of oil cargoes that it will ship to Chinese state firms to pay down debt to Beijing as it seeks to renegotiate repayment terms, sources said.
As a result China’s Unipec had no cargoes assigned to it in July, down from the usual two or three according to Reuters.
Angola’s Sonangol was thus in possession of 8 cargoes, three of which it recently assigned: a cargo of Cabinda to India’s IOC, CLOV to Galp and Nemba to India’s MRPL.
A cargo of Angola’s Dalia sold recently, likely by Exxon Mobil for export on July 6-7. Last offered at dated brent plus $1.30, another cargo of Dalia set for export in the last part of July was being offered for slightly higher.
Differentials for heavier oil from Angola and Congo remained strong as certain heavier oils were less abundant due to OPEC+ cuts, despite a slight waning in Chinese buying.
Northwest European gasoline stocks rose this week, signalling a continuation of poor demand ahead for light Nigerian oil.
But a trader said pressure from OPEC+ on Nigeria to cut its output could encourage demand for its oil which is already on the market in vast volumes.
Results had not yet emerged for two IOC tenders which were set to close on Friday.
British oil major BP has agreed to discount the price of the North Sea assets it is selling to Premier Oil, Premier said on Friday.
OPEC and its allies led by Russia will meet on Saturday to discuss extending record oil production cuts and to push laggards such as Iraq and Nigeria to comply with existing curbs.
