High price expectations by sellers of Angolan crude oil appeared to cool somewhat as some grades of January loading cargoes slipped on Monday.
Sonangol’s cargo of heavy, sweet Dalia crude oil, offered at a premium of $3.50 compared to dated Brent last week, was marked down to $3.00 on Monday.
Heavy, sweet crude oil valued for its easy refining into low sulphur shipping fuels mandated by new global rules remain in strong demand in East Asian markets.
Refiners appear set to provide products to meet the new requirement, and traders viewed the near record offers for some ideal crude varieties from Angola and Australia as too high. Firm middle distillate refining margins in Asia hovered around two-week highs and helped buoy demand.
Lighter varieties of West African crude continued a rally maintained for several weeks on comparable North Sea and Mediterranean price spikes.