W.Africa Crude-Stiff competition, lacklustre demand weigh on market
Exxon Mobil Corporation XOM | 0.00 |
LONDON, June 22 (Reuters) - West African crude oil differentials were little changed on Monday after being viewed lower last week, against a wider backdrop of lacklustre demand and stiff competition among supplying regions.
Europe is a clearing point for crudes, which Asian refiners are not currently purchasing, analysts at Kpler said.
West African excess barrels have to compete with Middle Eastern grades coming to Europe, more U.S. WTI flows to Europe, volumes from strategic reserves and Caspian CPC Blend, Kpler said.
Middle Eastern flows normalising if the U.S.-Iran peace deal holds could force West African sellers to slash offer levels to place their cargoes, Kpler analysts added.
Traders discussed lower offer levels for West African grades towards the end of last week.
Exxon offered a cargo of Angolan Hungo with August 6 to 7 loading dates at dated Brent minus $4.05 per barrel on the Argus Open Markets platform on Friday, one trader said.
Meanwhile, Nigeria's Dangote oil refinery recently bought a cargo of Cabinda crude at a similar price, the trader added.
