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W. Africa Crude-Crude glut lingers as diffs slip

PUBLISHED: Tue, 20 Apr 2021 16:30:45 GMT

LONDON, April 20 (Reuters) – Low demand and stiff competition by competing grades meant sales of West African crude were slow on Tuesday and large overhangs from previous months remained.

* Sales of heavy sweet Djeno crude from Congo were especially slow as main customer China held off on purchases.

* As many as five cargoes of the grade remain for sale even before publication of the June-loading programme, including a couple April-loading barrels. Offers are as low as dated Brent minus $2 a barrel.

* Sales for competing Brazilian sweet crude grade Tupi were better but had also slowed, with sale prices at premiums of about $1.

* Ancap purchased a cargo of Okwuibome Nigerian crude in its latest buy tender, which closed late last week, traders said.

* Traders awaited results of buy tenders from Taiwan’s CPC and Thailand’s PTT for July-arriving crude. The tenders are set to close this week.

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* Italy’s Eni is considering spinning off oil and gas operations in West Africa and the Middle East into new joint ventures to help to reduce debt and fund its shift to low-carbon energy, company and industry sources said.

* China’s March imports of crude oil from top supplier Saudi Arabia rose 8.8% from a year earlier, driven by strong demand and as delayed shipments finally arrived after port congestion. (Reporting by Noah Browning Editing by David Goodman) ))

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