West African crude oil exports to Asia are set to rise by 30 percent to 2.34 million barrels per day (bpd) in April, up from 1.78 million bpd initially planned for March, according to a Reuters survey of traders and ship-tracking data on Tuesday.
A flurry of buying from Indian refiners, led by state-run IOC, was the primary source of the increase. Indian refiners booked a total of 34 lots of West Africa crude to sail in roughly 21 April-loading vessels.
The amount doubles Indian buying compared with March, when refiners in the country booked about 16 West African cargoes. Tenders from state-owned firms, led by IOC, accounted for the bulk of the buying, which included Nigeria’s Brass River, Bonny Light, Agbami, Forcados and Qua Iboe, Angola’s Pazflor and Girassol and Equatorial Guinea’s Zafiro.
Privately held Reliance also booked five VLCCs to load in West Africa in April. The buying came as the companies sought to restock with the cheapest oil available after the end of the financial year,
pressing differentials for West African crudes to eight-month highs.
Despite this, India eschewed West Africa for Iraq’s Basrah Light when it purchased the first cargo destined for its recently opened strategic petroleum reserve. Several of the country’s refineries are set to enter seasonal maintenance, which will also lower crude consumption.
The number of cargoes going to China slipped from March, but the country remained an important destination, particularly for Angolan grades such as Cabinda, Saturno and Pazflor. Companies
booked at least 30 lots of West African to sail in about 16 VLCC crude oil carriers.
Chinese buying for May loading is also in question, as sources said the country’s strategic petroleum reserve has little space remaining.
