Stagnant European demand offered little hope to sellers of West African crude on Wednesday, as China and India continued to show the most appetite for oil imports.

Traders said there would be three cargoes of Nigerian Bonga crude oil exporting in July after Shell began a routine two-week maintenance of its export terminal on May 21.

Sellers of Nigerian crude continued to offer cargoes at relatively high prices, with BP offering a cargo of Forcados at
dated Brent plus $2.85.

Traders said demand from Asia, especially from India’s IOC which has absorbed several July-loading cargoes in a tender last week, was encouraging while European demand remained subdued.

Floating storage of West African crude was being partially discharged in some East Asian markets, traders said, in a sign
that shipping could free up and demand was rising.

Still, refiners – especially in Europe – had sought to guarantee longer-term floating storage at the beginning of the coronavirus outbreak and were not yet drawing on it.


Source: Reuters