W.Africa crude differentials seen softer as high freight rates hit buying interest
West African crude oil differentials were expected to soften as a jump in shipping costs weighs on buying interest, two traders said. The cost of shipping oil in the largest tankers has hit record highs this month following increased attacks on shipping. Around eight Angolan cargoes for October loading are still unsold and around 19 Nigerian cargoes, above the average volumes that have yet to find a buyer in an average trading cycle.
LONDON, Sept 21 (Reuters) — West African crude oil differentials were expected to soften, two traders said on Monday, as a jump in shipping costs weighs on buying interest. The cost of shipping oil in the largest tankers, including on West Africa routes, has hit record highs this month following increased attacks on shipping. "Freight is a killer everywhere," a trader said. Nigerian crude grade Qua Iboe was last heard on offer at dated Brent plus $6 and Bonga at dated plus $9.
No deals were heard at these levels and one trader said sellers were lowering offers, without citing evidence. Around eight Angolan cargoes for October loading are still unsold and around 19 Nigerian cargoes, above the average volumes that have yet to find a buyer in an average trading cycle. India's HPCL didn't award a recent buy tender, a trader said. com)