London — Spot trade was muted on Wednesdayas high freight rates weighed on Asian demand, while the market waited for key indicators such as Angola’s term allocations for February and the results of Indian tenders.
Around five Angolan cargoes were still available from the January programme including a cargo of Cabinda with Chevron.
Nigeria’s February loading programmes have not yet been finalized and the official selling prices were still not out, traders said.
Freight rates continued to rise on logistical issues related to the switch to cleaner shipping fuel coming into effect on
Jan. 1.
One trader said the rate was World Scale 110 for a voyage from West Africa to China, up around 10 points compared with last week. This has made the arbitrage east uneconomical as dated Brent is also strong.
TENDERS
India’s IOC closed a tender for crude loading Feb. 1-10. The results did not immediately emerge.
India’s HPCL issued a tender for crude loading Feb. 1-10 with results expected on Friday.
Taiwan’s CPC also closed a tender to buy crude with results expected to emerge by Friday.
– Reuters
