London — 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 time 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.
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