West Africa Crude: Diffs underpinned by strong margins


Sellers remained bullish on Wednesday, offering cargoes at high differentials on the back of strong distillate margins, but the focus was on three Indian buy tenders closing this week.


* BP offered a September loading cargo of Qua Iboe at dated Brent plus $1.45 a barrel.

* Recent offers for Qua Iboe were as high as dated Brent plus $1.50 a barrel. Total was showing one cargo and ExxonMobil was said to have three available.

* Distillate-rich Forcados was recently offered as high as $1.70 per barrel above dated Brent, Bonga at a 40 cent premium and Brass at a $1.30 premium.

* Earlier this week, Shell offered cargoes of EA and Bonga.


* Less than a handful of September-loading cargoes remained.

* BP continued to offer a cargo of Mondo. One trader said the level was dated Brent plus 40 cents a barrel. Total was recently offering a cargo of Dalia at dated Brent minus 40 cents a barrel.


* Indonesia’s Pertamina was running a tender to buy crude for October-delivery cargoes.

* India’s IOC was also running a tender to buy West African crude loading Sept. 20-30.

* India’s BPCL also issued a buy tender for September loading cargoes. The tender closes on Aug 4.

Related News

* Booming refinery profits are helping West African oil producers sell cargoes quickly, aided by a shortage in certain types of crude amid OPEC production cuts and Venezuelan troubles.

* A cut in Venezuela’s supply of heavy crude to U.S. refiner Phillips 66, in part due to quality problems, is helping to send more Angolan oil west.

* Kosmos Energy, which is exploring for gas offshore Senegal and Mauritania with oil major BP, will list on the London Stock Exchange by the end of September in a bid to attract more European investors, it said on Wednesday.