Differentials for benchmark Qua Iboe grade crude oil slipped back close towards their lowest level in five years on Friday weighed by a supply glut and sluggish demand.
There was a trade in the Platts price assessment window for a cargo of Qua Iboe at dated Brent plus 85 cents. This was only around 10 cents higher than deals done in July and August, which were the lowest since 2009.
Saudi Arabia slashed its oil prices for Asian and U.S. buyers on Thursday, in a move some analysts said shows it is stepping up its battle for market share a week after refusing to support OPEC output cuts.
This is forcing producers in other regions to cut prices to compete, traders and analysts said.
Brent’s premium to Dubai crude reached its highest since August, emphasising the challenge faced by sellers looking for Asian buyers of Qua Iboe and other grades linked to the Brent benchmark.
However making oil more affordable to end users, potentially helping demand, the price of Brent oil fell was on track to end the week near a five-year low.
ANGOLA
* Pazflor was the slowest of the major grades to sell, with four vessels still available for January. It was offered at around dated Brent minus $3, and last traded at minus £3.80 in the Platts window last week, a trader said.
NIGERIA
* Qua Iboe: Around half the 13 cargoes had found buyers, though some may be resold, traders said. Offers were at around dated Brent plus $1.45, slightly weaker than the $1.50 the previous day. Traders said it would likely trade at around dated Brent plus $1.20
TENDERS
* IOC bought 4 million barrels of oil. They bought 1 million barrels each of Nemba and Kissanje from BP, and 1 million each of Kole and Okwuibome from Glencore, traders said.
Indonesian refiner Pertamina bought two cargoes of Qua Iboe from BP, a trader said.
* Uruguay’s Ancap bought a cargo of Escravos, a trader said.
