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LONDON: Differentials for West African grades were stable to firmer, traders said, after a North Sea Forties crude pipeline outage that is expected to lead to a rise in European refining demand.

A spike in front-month Brent futures backwardation would likely cap significant price gains owing to the value loss on long journeys to Asia as India and China are the main destinations for West African oil, a trader with a Far East refiner said.

ANGOLA

State oil firm Sonangol has one cargo left from the January programme, a cargo of Pazflor, on offer at dated Brent minus 50 cents barrel.

Sonangol sold its last cargo of Dalia to Total on Monday.

The February loading programme should be released close to Dec. 16, based on the usual trading calendar.

Between five to 10 cargoes are left from the January programme.

NIGERIA

Just under 30 cargoes were left from the January programme.

Qua Iboe for January loading was last heard offered at dated Brent plus $1.95 a barrel, up from recent levels.

Phillips 66 was offering a cargo of Bonga at dated Brent plus $1.65 a barrel.

Shell was offering a cargo of Bonny Light at dated Brent plus $1.70 a barrel, a trader said.

TENDERS

Total won part of Indonesian Pertamina's latest tender for February and March delivery cargoes with a VLCC of Nigerian Qua Iboe.

Indian refiner BPCL is running a tender for a wide variety of grades from different regions that closes on Dec. 12.

 

 

 

Copyright Reuters, 2017

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