October 30, 2018 / 5:39 PM / 18 days ago

W. Africa Crude-High freight rates weigh on Asian demand

LONDON, Oct 30 (Reuters) - Some spot cargoes traded on Tuesday but overall buying interest had slowed due to rising freight rates, particularly to Asia.

* Nigerian Bonny Light, Bonga and Qua Iboe were being offered at around dated Brent plus $1.75 a barrel.

* Traders said that MRS and Trafigura sold cargoes of Forcados loading Dec. 5-10 but price and buyer details did not immediately emerge.

* About 15 cargoes of Angolan are still left from the December programme.

* Eni sold a cargo of Cabinda loading Dec. 16-17 to Unipec.

* BP was offering Kissanje at dated Brent plus $0.75 a barrel, Plutonio at dated Brent plus $0.20 and Pazflor at dated Brent plus $0.10.

* ExxonMobil was showing Saxi at dated Brent plus $0.60 and CLOV at dated Brent plus $0.90.

* Eni was offering Olombendo.

* “Freight is ridiculously expensive. It’s become a $1 a barrel more expensive going east, which puts the breaks on things,” one trader said.

* Tanker freight rates across sizes have jumped sharply since early October. VLCCs have gone from about World Scale 65 to around WS 100 in that period, according to Riverlake data.

* One trader said that sanctions on Iran, coming into effect Nov. 4, also meant the loss of the country’s tanker fleet, which has helped boost the market.

TENDERS

* Indonesia’s Pertamina issued a tender for crude delivered in January and February. The tender closes on Nov. 1 and bid remains valid until Nov. 5.

RELATED NEWS

* Oil prices will likely fall next year to about $65-70 a barrel as demand is curbed by trade wars and weakness in emerging market economies, Vitol chief executive Russell Hardy predicted on Tuesday.

* A high-stakes competition is emerging among energy exporters proposing multi-million-dollar crude terminals along the U.S. Gulf Coast to handle a gusher of shale oil coming from West Texas oilfields. (Reporting by Julia Payne, editng by Ed Osmond) ))

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