BRUSSELS: Sales from storage, spurred by a flat forward structure in Brent prices, were weighing on differentials for West African crude oil. Angolan cargo prices were under particular downward pressure, with close to 10 million barrels from the October programme up for sale.
ANGOLA
Unipec, the primary buyer of Angolan oil, was offering at least four of its October-loading Angolan cargoes, including Nebma, Dalia, Kissanje and Plutonio. It was also offering Congolese Djeno and Ghana's Jubilee.
Trader Statoil was also offering two VLCCs of Angola oil that will load in OCtober, including CLOV, Dalia, Kissanje and Mondo.
The offers were weighing on differentials, as the availability is particularly large for this point in the cycle. Additionally, the lack of contango meant that most traders were keen to sell their cargoes quickly, as they would lose money if they loaded without buyers.
Angola's November exports will drop to 48 cargoes, or 1.54 million bpd in November. Sonangol was offering just two cargoes, both Dalia, at premiums of 30 cents fob to dated Brent. .
NIGERIA
While some Nigerian oil was being sold out of storage, smaller loading programmes meant there was a lower amount of excess oil for prompt loading.
Qua Iboe exports in November were limited to five cargoes due to subsea maintenance at the export platform, while Bonny Light remained under force majeure due to the closure of one of its two export pipelines.
Around 10 October-loading cargoes remained, with several cargoes of Forcados among them. Traders said offer levels of close to $2 per barrel made it too expensive for some buyers.
The Bonga export programme for November emerged with five cargoes, down from six in October.
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