London — Preliminary export programmes for Angolan oil for October began to emerge on Friday while price offers for Nigerian crude improved on increased Asian demand.
Angola is set to export 38 cargoes in October, down from 44 initially planned for September but listings for several grades were not filled and are expected in the coming days.
Cargoes for September loading had almost cleared amid last-minute discounts, with Dalia marked down to around $2 above dated Brent.
*Around 30 cargoes of Nigerian crude were still available for September loading.
A tender by Uruguay’s Ancap was filled by Nigerian Erha, traders said, although details did not immediately emerge.
Major grade Qua Iboe was being marketed at $2.60 above dated Brent for September compared with $2 about dated for late August, but buyers said prices would need to come down.
Heavy buying from India this week was heard to have boosted confidence among sellers.
Margins for European high sulphur fuel oil (HSFO) fell sharply this week, as the International Maritime Organisation 2020 maritime fuel rules set for next year start to weigh on prices.
* Cracks for Asian HSFO narrowed its discount to Brent for a second session straight on Friday to minus $16.66 a barrel but still ended the week sharply lower.
Some traders fear the margins could plunge as low as minus $20 or even lower, but others regard the downturn as temporary while storage infrastructure is re-equipped for compliant fuels.
Energy intelligence firm Vortexa noted that 50% of Australia’s heavy sweet crude were delivered into floating storage around Singapore this year, reflecting a rise in demand for Low Sulphur Fuel Oil ahead of IMO 2020.