W. Africa Crude-Angolan differentials ease as sellers seek to offload
Price levels for the last few cargoes of Angolan crude for September export eased slightly on Wednesday, traders said, as sellers seek to clear supplies before interest shifts to later loading barrels.
* About six cargoes remain for loading in September.
* Demand from Chinese independent refiners had pushed differentials higher, but in the last week offers have been marked lower for the few remaining cargoes.
* Girassol, offered at about a premium of $3.00 to dated Brent last week, eased to around a premium of about $2.70 while Dalia offers eased from $2.70 compared to date Brent to $2.50.
* Distillate refining margins are high both in Europe and Asia, providing a boost to Angolan crude after three months when Chinese demand was especially weak.
* Around ten or fewer cargoes remain for loading in August, as the largest overhang of 2019 finally begins to abate.
* Neither Nigerian nor North Sea crudes have traded well in recent weeks as U.S. exports hit an all-time high for June and flows to Europe ramped up.
* India’s IOC and Uruguay’s ANCAP are both running a tender that includes West African grades this week for loading in September.
Source: Reuters (Reporting By Noah Browning. Editing by Jane Merriman)