W.Africa Crude Slow to Trade; Nigerian Glut Fading
Angolan cargoes for October loading are so far finding buyers slowly, traders said on Friday, while there were further signs that an overhang of September-loading Nigerian cargoes is being absorbed.
Most buyers have baulked at the initial offers of Angolan crude, which a trader said were $1 a barrel or so higher than previously traded prices. Business has focused on term cargoes and only one spot trade has come to light.
The overhang of September Nigerian cargoes is showing signs of easing as a drop in differentials, contango in the Brent market and wider refinery margins have helped cargoes to find buyers. "Most are now sold," said one.
Total sold a cargo of Pazflor, a trader said, in the first known spot trade for October.
Cabinda: Offered by Chevron (CVX) at dated minus $1.70, a trader said, down from the initial offer and 40 cents below the last known offer from state oil company Sonangol.
Offer levels, relative to dated Brent, were last heard to be as follows for other grades. They are higher than previously heard traded prices.
- Dalia -$2.50
- Kissanje, -$0.70
- Nemba, -$1.30
- Plutonio, -$1.80
- Saturno, -$5.25
Qua Iboe was still valued at around dated Brent plus $1 a barrel, in line with Thursday.
Most cargoes for September loading have been sold, a trader said. At the start of the week, the general view among traders was that around 10 cargoes were available.
Offers for October cargoes are so far scarce. Qua Iboe will load 12 cargoes, a trader said, the same as in September but a lower daily loading rate.
(Reporting by Alex Lawler; Editing by David Holmes)