off-the-wire

W. Africa Crude-Grades under pressure due to weak demand

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, March 23 (Reuters) - Spot demand was muted on Thursday in part owing to nationwide strikes in France that led to the closure of some refining output and storage facilities.



* Europe, including France's large refining system, was an outlet that used to mop up overhangs of west African crude.


* High VLCC freight rates have begun to soften which could soon spur more Asian demand.


* Angola's state oil firm Sonangol was offering two spot cargoes in May: a Gimboa at dated Brent minus $3.50 and a Girassol at dated Brent plus $3.00 a barrel.
* An overhang of about 20 cargoes of April loading Nigerian crude persisted. The latest official selling prices were not adjusted to entice more demand.
* Several April loading Nigerian cargoes were on offer: Qua Iboe at dated Brent plus $2.00, Akpo and Agbami at dated Brent flat, and Bonga and Erha at dated Brent plus $3.00 a barrel.
* Four cargoes of Nigeria's Bonny Light will load in May. RELATED NEWS
* Asian gasoil stocks have risen sharply in recent weeks as regional refiners are stuck exporting to markets east of the Suez, with narrower opportunities to send barrels to Africa flooded with Russian cargoes, traders and analysts said.


* China is expected to account for around 40% of the increase in global oil demand this year as its economy emerges from strict lockdowns, but the increased use will not take prices back to 2022 levels, consultancy Wood Mackenzie said on Thursday.
(Reporting by Julia Payne;Editing by Elaine Hardcastle)


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