Demand for Angolan crude from Chinese independent refiners and for Nigerian cargoes from European customers has breathed life into the West African market, traders said on Thursday.
A drop in freight rates for shipping West African crude to China is partly behind the pickup, but predominantly, it is the so-called teapots that have started stocking up again after a lull during December, traders said.
The benchmark VLCC rate for the WAF-Asia journey is around its lowest since September, having hit three-year highs in November, which dealt a blow to demand particularly for Angolan crude.
Chinese refiners have also been asking for Congolese Djeno, one trader said.
Qua Iboe has changed hands at a premium of $1.75 to dated Brent this week, its highest in months, while supply of similar grades such as Forcados and Bonga were said to be virtually sold out.
* There are around a dozen Nigerian cargoes still believed to be available for sale but this is down from closer to 20 at the start of the week.
* In terms of tenders, Turkey’s Tupras awarded a tender for West African crude to Total. Traders said the grade involved was Forcados, while IOC’s tender for crude loading March 1-10 closed on Thursday, meaning the winner had not yet emerged.
* Around 10 cargoes of February-loading Angolan crude were still believed to be available for sale, broadly unchanged on Wednesday.
- Reuters