A fresh indication is has emerged as traders in the international oil market said Interest in Nigerian crude was set to rise as the country faces pressure from fellow producers to rein in output, following rise of Angolan crude sale.
This is coming even a demand for Organisation of Petroleum Exporting Countries, OPEC+ crude booms, as the organisation meeting date draws near.
A source told Reuters that, Angola has cut the number of oil cargoes that it will ship to Chinese state firms to pay down debt to Beijing as it seeks to renegotiate repayment terms.
Therefore China’s Unipec had no cargoes assigned to it in July, down from the usual two or three.
Angola’s Sonangol was thus in possession of 8 cargoes, three of which it recently assigned: a cargo of Cabinda to India’s IOC, CLOV to Galp and Nemba to India’s MRPL.
A cargo of Dalia sold recently, likely by Exxon Mobil for export on July 6-7. Last offered at dated brent plus $1.30, another cargo of Dalia set for export in the last part of July was being offered for slightly higher.
Differentials for heavier oil from Angola and Congo remained strong as certain heavier oils were less abundant due to OPEC+ cuts, despite a slight waning in Chinese buying.
Northwest European gasoline stocks rose this week, signalling a continuation of poor demand ahead for light Nigerian oil.
But a trader said pressure from the OPEC+ on Nigeria to cut its output could encourage demand for its oil which is already on the market in vast volumes.
Results had not yet emerged for two IOC tenders which were set to close on Friday.