Angola’s preliminary loading programme for July emerged on Thursday, indicating a rise of one cargo compared to June, for which a few cargoes still remain. High price offers are expected, given global tightness in physical markets and a broad gap in heavier grades.
July exports are set to be 44 cargoes, a recovery to just below normal levels after maintenance on two key streams pushed June’s preliminary programme to near 10-year lows, although they rebounded to 43 cargoes in the final programme.
Term allocations are set to emerge early next week.
2-3 Angolan cargoes remain for June loading, after key buyer China finished its purchases early for the month and European customers have been reluctant to meet high prices.
Asian demand may be weighed down by a widening of the Brent-Dubai spread DUB-EFS-1M to $3.10 — the highest since October — as well as steep backwardation, with the front-month Brent futures spread closing at nearly 90 cents on Wednesday. LCOc1-LCOc2.
Most traders believe China has few alternatives for Angola’s heavier oil grades, which are scarce in the global market because of U.S. sanctions on Iran and Venezuela.