W. Africa Crude-Price offers edge lower amid flurry of tenders

LONDON, Jan 11 (Reuters) – Offers for West African crude, especially Angolan, continued to slip on Monday amid tepid buyer interest and various tenders.

* A backwardated market structure, high futures prices and poor refining margins were weighing on demand, especially in East Asia.

* Spot prices for crude from other regions was deemed preferable, with sales up from the Middle East and North Sea.

* Sonangol had yet to sell its three spot cargoes, with prices marked down by about 30 cents each compared with offers late last week. Dalia was being offered for dated plus $1.20 and cargoes of Girassol and Olombendo at plus $1.70 each.

* Perenco awarded Trafigura a cargo of Gabonese Mandji loading in late February while China’s Unipec was awarded two cargoes of Congolese Djeno.

* India’s IOC awarded Vitol a cargo of Nigerian Akpo in a buy tender for loading in late February.

* South Africa’s Sasol had issued a buy tender for crude for February loading and early March delivery to Durban, due to close on Tuesday.

* Pertamina was running another two buy tenders for crude for late February and early March arrival, set to close on Tuesday, after closing two tenders in the middle of last week.

* Taiwan’s Formosa was also running a tender for March-loading crude, with the tender’s close imminent.


* Saudi Arabia’s voluntary oil production cut is expected to bring the market into deficit for most of 2021 even as new lockdowns to contain the spread of the coronavirus batter oil demand, analysts say. The International Energy Agency (IEA) on Monday warned that global emissions hollowed out by the COVID-19 pandemic are set to rebound in 2021 unless governments take swift policy action.

Source link