LONDON, APRIL 5, 2018 – Nigerian crude oil offers for May loading were above the April level despite what traders described as limited demand. Angola cut its offer levels for May-loading oil. China’s Unipec was also still offering cargoes, as sources said eastern demand remained subdued.
Three million barrels of Nigerian oil were set to sail for India as part of the most recent IOC tender, but an excess of cargoes remained.
There was a handful of April cargoes yet to trade, as well as the bulk of the May programme, traders said.
Still, offer levels were above those of the previous month, which sources said was limiting spot trade.
Gunvor and Chevron were offering Forcados as high as $1.90 per barrel above dated Brent, while BP offered Bonny Light at the same level.
Shell was offering Agbami at dated Brent plus 60 cents a barrel and Erha at dated Brent plus $1.90.
Traders said while these levels were too high to enable fresh spot deals, some sellers could be planning to keep the cargoes for their own refining systems.
Angola’s state oil firm Sonangol lowered its offer levels on all five of its cargoes by 30 cents. It offered three Dalia at dated Brent minus $1.20 a barrel, down from a 90 cent discount, Sangos at minus 70 cents, down from minus 40 cents, and Saturno at dated Brent minus $1.05, down from minus 75 cents.
China’s Unipec was also offering cargoes of Angolan oil, including cargoes of Plutonio and Saxi at flat to dated Brent. It offered other cargoes on a delivered basis in Asia.
Due to a public holiday in China on Thursday, buying interest was nonexistent. But traders said it was weak overall due to a backlog of cargoes still waiting to discharge off the coast.
TENDERS
Shell had placed a cargo of Erha and a cargo of Forcados into a tender from Indian state oil refinery IOC traders said.
Vitol had also won the right to supply IOC with one cargo, which sources said was likely Akpo or Agbami.
Indonesia’s Pertamina did not award its tender to buy oil because of a leak on the subsea pipeline feeding the refinery that caused an oil spill and fire.
Pertamina’s Balikpapan refinery was operating at reduced rates as a result, and getting crude supply from a secondary pipeline and cargo deliveries.
India’s MRPL also issued a tender to buy 600,000 barrels of oil, for June 1-15 loading, which closes on April 10-12. Grades included Mondo, Pazflor, Ceiba, Cabinda, Plutonio and Dalia.
