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W.Africa Crude-Thin as market awaits tenders outcome
August 5, 2013 / 2:08 PM / 4 years ago

W.Africa Crude-Thin as market awaits tenders outcome

* Tight North Sea, Libya supply boost Nigerian grades
    * Weak fuel oil in Asia, slack Chinese demand pressure

    LONDON, Aug 5 (Reuters) - West African crude oil grades
steadied on Monday, with activity light as traders awaited the
outcome of tenders issued by Indian refiners.
    Both IOC and MRPL are due to issue tenders this week, and
traders said they were reluctant to do deals before the results
were known.
    Nigerian grades have sold relatively quickly for October
loading, with only around 10-12 cargoes still available around
two weeks after it emerged.
    Differentials on Nigerian grades have benefited from
relatively strong demand from Europe, and from tight supply
because of disruption to supply of Libyan oil, which is also
light and sweet.
    "Nigerian grades were the most economic grades into north
west Europe for about 5-6 weeks so stuff is moving to the region
and this is beefing up diffs," a trader said, pointing to
maintenance in the North Sea which has driven up differentials.
    Libya's government is working to end protests at oil
facilities that have cut exports, and its oil production has
risen to nearly half its normal rate, its top oil official said
on Monday. 
    Angolan grades, by contrast, were selling slower than
earlier in the year, with buyers in China said to be less
willing to take on new oil due to run cuts and full storage
    The trader said weakness in fuel oil in Asia was also
contributing to relative weakness for demand and differentials
for Angolan crude oil.
    * Qua Iboe BFO-QUA: Offered at dated Brent plus $3.40 a
barrel and valued around dated plus $3.00.   
    * Bonny Light: Still under force majeure. Traders said they
did not expect a September loading programme to emerge.
    * Kissanje: Two cargoes were available, one of which was
offered at around dated Brent plus 40 cents.
   * Hungo: Two cargoes also available, one of which was offered
at dated minus $1.40.
    * Other grades still available include Pazflor.
    * India's MRPL issued a tender for loading in early October
on Wednesday, a document showed. The tender will close on Aug. 5
and will remain valid until Aug. 7, it said. 
    * IOC also issued a tender valid until Aug. 7 for October
loading cargoes.
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click on: here

 (Reporting by Simon Falush; editing by James Jukwey)

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