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Markets

West Africa Crude: Ample supply weighs on differentials

Published Updated

imageLONDON: Price differentials of West African crude were under pressure on Tuesday, as ample supply of September loading oil was available shortly before crude for October comes to market.

There were seven or eight cargoes of Angolan oil for sale, some of which were re-offered after initially finding a buyer.

Cargoes for October export are set to come to the market by next Monday.

Angolan oil has tended to sell relatively quickly as it of a quality that suits Asian refiners.

However the biggest buyer, China's Unipec has recently offered Angolan cargoes back to the market after initially purchasing the crude.

They have since removed these cargoes from offer but other buyers have been heard to re-offer September loading cargoes, a trader said.

OPEC raised its forecast of oil supplies from non-member countries in 2015, a sign that crude's price collapse is taking longer than expected to hit US shale drillers and other competing sources.

Copyright Reuters, 2015

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