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Nigerian crude price offers rebound as freight costs ease

LONDON, Oct 29 – Sellers offered Nigerian crude
oil at higher prices on Tuesday, rebounding towards the rates of
previous months as freight costs eased and European demand
remained robust.

* Nigerian Bonny Light crude was being offered at a premium
to dated Brent of around $2, far higher than recent offerings of
$1.40 but below ambitious asking prices of $2.50 in September.
* U.S. sanctions on a Chinese shipping fleet led to the
highest freight rates in four years, upending the oil market.
* Freight costs for a Suezmax from the Bonny Light terminal
to Rotterdam were projected at $2.68 a barrel on Monday by
Refinitiv, down from highs above $5 two weeks before but still
well above norms of this year at or below $2.
* Nigerian Egina continued to be offered at higher prices,
in excess of $4 above dated Brent amid intense interest around
the transition to low sulphur shipping fuel.
* Total was likely awarded an HPCL tender with a VLCC of
Nigerian Qua Iboe crude oil loading December 1-10.
* Up to 15 cargoes of Nigerian crude remained for export in
November along with cargoes from other West African exporting
* Angola sold out its November programme amid slower than
normal trading due to the freight crisis.

* Chinese oil trader Unipec has restarted using tankers
owned by state-owned shipping group COSCO after the United
States eased sanctions temporarily on the Chinese state-owned
shipping group, trade sources said on Tuesday.
* South Sudan plans to offer 14 oil blocks to exploration
companies in a licensing round by the first quarter of 2020, its
oil minister said on Tuesday, switching from its previous method
of direct negotiations with explorers.

(Reporting by Noah Browning; Editing by Pravin Char)

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