W.Africa Crude-Stiff competition, lacklustre demand weigh on market

Exxon Mobil Corporation

Exxon Mobil Corporation

XOM

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- 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.