August 2, 2019 / 2:30 PM / 4 months ago

W. Africa Crude-Libyan outage may ease Nigerian oversupply

LONDON, Aug 2 (Reuters) - An excess of prompt-loading Nigerian cargoes may ease as a result of the declaration of force majeure on exports from Libya’s biggest oilfield on Thursday, traders said.

NIGERIA

* A sizeable overhang of August loading cargoes has built up amid sluggish demand and plenty of competition from North Sea barrels, interest for which has also been low in recent days.

* Libya’s 290,000 barrels per day (bpd) shut down, putting a quarter of the country’s oil production offline.

* Buyers are holding out for considerable markdowns on prompt cargos, dampening enthusiasm for later loading barrels.

* For example, bids for a cargo of Forcados loading at the beginning of September are well below a $2 premium compared to dated Brent, while a later one is being offered for £2.50.

* Differentials for August loading Bonny Light and Qua Iboe crude were at well below a $2.00 premium to dated Brent.

ANGOLA

* Fewer than 10 cargoes remain for September loading.

* After three months of poor sales to top customer China, most Angolan crude grades are being offered at prices of between 50 cents and a dollar above dated Brent more than for August on good margins for middle distillates and residual fuels.

* Despite possibly cutting its official selling prices (OSPs) for lighter crudes, Saudi Arabia may leave prices for heavier grades unchanged as strong fuel oil margins in Asia also buoy demand for some Angolan varieties.

TENDERS

* Indonesia’s Pertamina has issued a tender for 1.8 million barrels for delivery to Teluk Semangka between Oct. 1-5 and for two 950,000 barrel cargoes for delivery to Balikpapan between Oct. 8-15 and Oct. 22-29, set to close on Friday.

RELATED NEWS

* Brazilian state-run oil firm Petroleo Brasileiro SA produced 2.76 billion barrels of oil equivalent per day (boepd) in July, it said in a presentation on Friday, a strong increase over previous months.

* Oil prices slumped on Thursday as the United States threatened more tariffs on China and traders concluded the probability of a recession sapping oil consumption had increased. (Reporting by Noah Browning; Editing by Susan Fenton) ))

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below