Port congestion and abundant stocks have dampened Chinese buying, but Angolan price differentials remain steady as refiners switch towards sweeter crude grades amid scarcity and high prices for sour alternatives.

* Chinese state and independent refiners continue to hold off on buying as the backlog lingers, traders said.

* Chinese ports are struggling to unload record volumes of crude with storage tanks full after the country rushed to buy extra barrels during April’s oil price crash.

* Angolan price offers stayed steady as buying interest from Europe perked up, compensating for the unusually low demand in the Far East.

* Angola is resisting pressure by OPEC’s de-facto leader Saudi Arabia for a steeper oil output cut to comply fully with record supply curbs, OPEC and industry sources said.

* With more cars taking to the roads as coronavirus lockdowns ease, demand for lighter, sweeter oil more suitable for refining into gasoline is ticking up.

* Gasoline stocks in northwest Europe fell by almost 9% in the week to Thursday in the third consecutive weekly drop.

* Still, prices of Mediterranean and West African lighter crude grades have yet to firm up amid a global glut of cheaper U.S. crude.

 

Source: Reuters

Share