Angolan crude for loading in June continued to perform strongly despite significantly marked up prices. Less than 10 cargoes of Angolan remained for June loading after state oil company Sonangol set the tone for price offerings by marking up its cargoes of various grades by around $1, with other sellers following suit.
Despite backwardation and squeezed margins, buyers were seen to be largely meeting the high offers. The elevated prices, all-time highs for most grades, were partly a function of an unusually small June program.
A cargo from the girassol stream, which has been under maintenance, was heard to have sold at a $1.50 premium compared to dated Brent, around the highest in six years.
Angolan heavy-medium crude varieties are especially in demand given a gap in the market caused by U.S. sanctions on comparable Iranian and Venezuelan grades, as well as compatibility with new IMO regulations in 2020.