Nigerian and Angolan crude differentials jumped on Wednesday, with sellers offering cargoes several dollars above recent levels as cheap freight rates provide a boost.
Exxon Mobil was offering a cargo of Angolan Girassol at around dated Brent plus 75 cents to $1 a barrel, one trader said. Nigerian Qua Iboe was also shown at similar levels.
Eni was said to have sold a cargo of Angolan Olombendo via tender. Buyer details did not immediately emerge. Nigerian and Angolan grades were selling at around $7 to $8 below dated Brent last month and have rebounded swiftly.
The freight rate for a VLCC from the Middle East or West Africa has sunk to about World Scale 60, down from over 100 last
week, according to shipping fixtures and data from Refinitiv Eikon.
“Between now and month ago, you have freight dropping from about $8 a barrel to just $3 a barrel to Asia but at the same
ime the contango is not as advantageous,” one trader said.
However with lockdowns easing, refiners in other regions are also looking to pick up more June cargoes which is also boosting prices.