W. Africa Crude-Heavier oils stay strong on Chinese demand - THE BUSINESS PACKAGE


Friday, May 29, 2020

W. Africa Crude-Heavier oils stay strong on Chinese demand

LONDON, May 29  - Heavier oils from Angola and
Congo remained steady at high prices on Friday, while Nigerian
oil fared lower amid a large glut of unsold cargoes.
    * A cargo of Congolese Djeno crude was being offered for
dated Brent plus $1.50.
    * Angolan Girassol was being offered for $3.30, down about
20 cents from last week.
    * "Numbers are very strong, pushed from China," one trader
    * With around 50 Nigerian cargoes yet to be sold for June
and July, oil from Africa's number two exporter continues to
face a difficult path to market amid sluggish demand, especially
from Europe.
    * Crude output by the Organization of the Petroleum
Exporting Countries (OPEC) in May and April showed compliance to
a production cut pact of 19% from Nigeria and 73% from Angola.
    * While vast cuts by producer countries and renewed fuel
consumption from easing coronavirus lockdowns may soon rebalance
oil supply and demand, some analysts and traders see a glut in
storage keeping the market in contango for much longer.
    * China's securities regulator has approved the launch of
low-sulphur fuel oil (LSFO) futures, the Shanghai Futures
Exchange (ShFE) said on Friday.             

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