W. Africa Crude-Glut of light sweet crude lowers Nigerian prompt prices

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LONDON, July 24 (Reuters) – Nigerian differentials continued to slide amid a steep excess of August-loading barrels, while Angolan crude appeared set for an improvement in sales to China on new quotas for state buyers.
NIGERIA

* Prompt cargoes for loading at the end of July or early August were selling for especially low prices amid a plethora of light sweet crude in the Atlantic Basin.

* Exxon was heard to be seeking to sell a cargo of Bonny Light, while August-loading Qua Iboe and Bonny Light were heard to have sold for as little as below a $2 premium compared to dated Brent.

* August-loading Forcados crude was also struggling to sell, amid an especially large export programme for the month and heightened interest in the new offshore Egina stream.

* At least 20 cargoes remained for August loading.

* Nigeria’s NNPC plans to renew its contract for crude sales with Indonesia’s Pertamina which expired last year, part of moves to boost exports, it said on Tuesday.

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ANGOLA

* Several factors appear to be favouring a pick up in Chinese demand, traders said, after June through August trading has been markedly down compared to earlier months.

* Stocks of Iranian oil from steep imports earlier in the year appear to be depleted, margins for key middle distillates are rising ahead of new marine fuel rules next year, favouring Angola’s heavier crudes while freight rates have eased.

* China raised total export quotas for refined oil products to 48.15 million tonnes in 2019, traders said, up from 43 million tonnes through the same period last year.
TENDERS

* Astron Energy in South Africa has issued a tender for a West African grade delivering to Saldanha port on Sept. 24-26 set to close on Thursday.

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* Nigeria’s state oil firm said it had suspended cash call repayments to Eni for three months, and did not plan to renew some of the Italian firm’s asset licences.

* OPEC has shifted the goal posts for assessing an overhang in oil inventories, giving the group more room to prolong production cuts, while analysts warn the move will offer a distorted view of market conditions.

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