Angolan crude differentials remained under pressure on Tuesday from lacklustre demand on the part of major buyers and weak refining margins.
A narrowing in refining margins has hit European demand, while large customers such as China have been buying less due to high product stocks, cheaper crude in other markets and higher freight rates.
“It’s a multitude of reasons,” said a trader referring to the softer demand. “But differentials coming off should help cracks and margins a little.”
The Nigerian market was steady with a number of July-loading cargoes still looking for buyers.
NIGERIA
Traders said five or six July cargoes were available, as well as most of August’s more than 50 cargoes.
Nigeria’s largest grade, Qua Iboe, was valued at around dated Brent plus $1.80 by traders. August cargoes are offered at up to dated plus $2.20, depending on dates, a trader said.
Royal Dutch Shell has yet to lift a force majeure on output from its EA field in Nigeria that was declared in June, a company spokesman said. Shell is repairing equipment damaged by bad weather, suspending output of about 40,000 barrels per day.
ANGOLA
Price indications on Tuesday suggested a further softening in differentials.
Dalia: Offered at dated minus $3.00, a trader said, down from a value of dated minus $2.80 on Monday.
Cabinda: Heard to have traded around dated minus $1.30 and offered at dated minus $1.50, traders said. That is down from an offer level of dated minus $1.00 on Monday.
ASIAN TENDERS
he results of buying tenders from MRPL and BPCL are expected this week.
Reuters
