July 1, 2019 / 4:22 PM / 3 months ago

W. Africa Crude-Angolan set to sell better on cheaper offerings

LONDON, July 1 (Reuters) - Angolan crude oil was on track to sell more swiftly after its poorest month of the year, with August loading programmes attracting more interest on eased price offerings.

ANGOLA

* About 20 cargoes remain for loading in August, roughly the same rate as in better trading months this year.

* The premium of Brent crude to Dubai DUB-EFS-1M settled at a two-month low of about $2.81, increasing the appeal of Atlantic basin crude versus Middle Eastern varieties.

* Still, Chinese buyers were reluctant to buy Angolan in volumes seen in earlier months due to backwardation and high freight rates relative to the beginning of the year.

* Offers for Angolan grades more or less matched their lows at the end of the slow July-loading cycle and have even come down slightly, with Cabinda heard to have been at a premium above dated Brent of $1.30 and Girassol at $2.00.

NIGERIA

* Gasoline departures from Northwest Europe to the United States rose this week, according to Refinitiv, as the PES Philadelphia refinery shutdown undercuts U.S. refining capacity.

* An unexpected fall in U.S. gasoline stocks reported last week is also putting Nigerian in higher demand in Europe.

* The positive signs have put price offerings for major grades Bonny Light and Qua Iboe slightly above a premium of $2.50 above dated Brent, near multi-year highs.

RELATED NEWS

* OPEC agreed on Monday to extend oil supply cuts until March 2020, three OPEC sources said, as the group’s members overcame differences in order to prop up the price of crude amid a weakening global economy and soaring U.S. production.

* Russia reduced oil production in June by more than the amount agreed in a global deal to cut output, the energy minister and industry sources said on Monday, as the sector still felt the impact of a contaminated crude crisis that crippled exports.

Reporting by Noah Browning; Editing by David Evans and Edmund Blair

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