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Nigerian steady on Indian demand, European margins

Differentials for Nigerian oil were supported by steady Asian demand and rising European gasoline margins.

NIGERIA

* Nigerian exports to India finished June at about 500,000 bpd, according to Refinitiv data, the highest since December.

* The high levels compensate for Iranian and Venezuelan crude kept off the market by U.S. sanctions, though the uptick of U.S. crude into India has outpaced WAF and other grades.

* Gasoline stocks in independent storage in the Amsterdam-Rotterdam-Antwerp (ARA) refining and storage hub rose by 6% in the week, Dutch consultancy Insights Global said, as traders anticipate greater U.S. demand amid the PES refinery shutdown.

* An unexpected fall in U.S. gasoline stocks reported this week is also putting Nigerian in higher demand in Europe even as Nigerian exports to the U.S. hit a five-week low.

* The positive signs have put price offerings for major grades Bonny Light and Qua Iboe well above a premium of $2.50 above dated Brent.

ANGOLA

* Angolan exports to China finished the month at around 1.1 million bpd, the highest since January, before sagging margins and freight costs led to July’s more modest flows.

* Prices are steady and low for August loading cargoes after mid-July price offerings were deemed to high by Chinese buyers, leading to the first overhang of 2019.

* Around 1-2 cargoes of Angola’s planned 45 cargoes for August were selling per day, as interest in heavier crude remains generally high despite lacklustre Asian demand.

RELATED NEWS

* Russian Energy Minister Alexander Novak said he hoped a meeting of G20 nations in Japan would provide clarity for OPEC and non-OPEC oil producers as they consider whether to extend a deal on cutting crude supplies beyond June.

* Venezuelan state oil firm PDVSA is revamping one of its major processing operations geared to supplying U.S. buyers to produce instead a crude grade favoured by Asian refiners, according to internal documents seen by Reuters.

Source: Reuters (Reporting by Noah Browning; editing by David Evans)

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