Some of the excess Nigerian cargoes are likely to sail to India after state refiner IOC awarded its latest tender to buy oil. Angola’s Sonangol sold some May-loading barrels, but traders said it continued to offer six cargoes and that differentials to dated Brent could come under downward pressure.
- Spain’s Repsol had purchased a cargo of Gimboa from state oil company Sonangol on a spot basis, traders said. Sonangol had been offering the cargo at a 60 cent discount to dated Brent.
- Sonangol had also sold a cargo of Dalia before term allocations, to a western buyer, while Phillips66 took a cargo of Hungo as a term allocation. Sonangol stopped offering its spot Hungo.
- Sonangol was still offering six cargoes, including four Dalia at dated Brent minus 75 cents, Sangos for May 21-22 loading at dated minus 30 cents and Saturno for May 20-21 loading at dated minus 65 cents.
- Traders BP, Statoil and Total were also offering spot cargoes of May-loading Angolan oil. Exxon also had an April-loading CLOV available, one trader said.
- Spot offers were still concentrated on April-loading cargoes, traders said, with few offers surfacing for the May programmes.
- Roughly 20 cargoes remained available to trade from the April programme, including Qua Iboe, Erha and others.
- ExxonMobil had lowered its offer for Qua Iboe to dated Brent plus $1.40 a barrel, down from the most recent offer of a$1.60 premium and well below initial offers closer to premiums of $2 per barrel.
- Qua Iboe and Agbami had traded more quickly than other grades, and the May programme for Qua was limited by maintenance.
- Indian IOC’s purchased at least 3 million barrels of West African crude from Total and Chevron in its tender for May-loading.
- Traders said the Indian refinery would take Nigeria’s Agbami and Escravos as part of the purchase, but neither confirmation of the grades nor further information on other grades were available.
- Results were expected on Friday for tenders from Thailand’s PTT and Taiwan’s CPC to buy West Africa oil.