Wednesday, October 16, 2019

W. Africa Crude-Buyers Wary as Freight Rates Weigh

October 7, 2019

AdobeStock / © Jose Gill

Sellers returned to the window on Monday to entice buyers spooked by high freight rates due to Washington's sanctions on subsidiaries of a major Chinese shipping firm at the end of September.

Long-haul rates to Asia have risen sharply prompting refiners to shed some cargoes.

China's Unipec offered four cargoes in the window for a third session all November loading on a fob basis. These were Angolan Saturno at dated Brent plus 35 cents, Dalia at dated Brent plus $1.90, Mostarda at dated Brent minus 5 cents and a
cargo of Equatorial Guinean crude.

Angolan state oil company Sonangol was still offering for cargoes of November-loading Cabinda at a premium of $3.10 compared to dated Brent, Dalia at $2.80 and Gindungo at $1.60.

Vitol offered a cargo of Forcados at dated Brent plus $4.70 on a delivered basis to Rotterdam for Nov. 15-20 arrival.

Trafigura also offered a cargo of Forcados at dated Brent plus $2.70 loading Nov. 10-15.
   
TENDERS
Tenders by India's IOC for two cargoes of West African crude for November closed, but the winners did not immediately emerge.

Turkey's Tupras issued a buy tender for Bonny Light, Forcados, Jones Creek or other similar grades for Nov. 25 to Dec. 10. It closes on Oct. 8.

India's IOC issued a new tender for west African crude loading Nov. 24 to Dec. 3 closing later this week.

Reporting By Julia Payne

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