crude oil barrels

More Angola crude oil traded on Wednesday but Nigerian grades lingered as an overhang of light sweet crude oil grades intensified.

Sonangol sold cargoes of Dalia to buyers likely to take it west, traders said, further dwindling the amount of oil it has left to sell for December loading. Already, Cabinda is sold out, along with Hungo, while other grades are quickly moving as well.

China is a key buyer, especially as the nation grants more import licences to more of its refineries.

“December Angola seems to be moving pretty well,” one trader said.

Nigeria, in contrast, is still looking for buyers to take at least 15 million barrels of November loading oil, along with the more than 60 December loading cargoes. One cargo was added to the Forcados programme, bringing the total to nine, pressuring differentials.

At the same time, Reuters tracking data showed India stepping up purchases from Africa, importing nearly 27 percent more of the region’s crude in April-September, mainly from Angola and Nigeria.

In other news, Iran’s exports of crude oil and condensate dropped to a seven-month low this month, hit by refinery maintenance and a lull in demand ahead of winter, according to an industry source with knowledge of the nation’s tanker loading schedule.

ANGOLA

* Sonangol sold two more Dalia cargoes, helping to support differntials. The cargoes are expected to sail west.

* Cabinda and Hungo are sold out, while other grades are also moving quickly.

* Girassol was offered at dated minus 40 cents, but traders said prices would have to be significantly lower to make a trade. Kissanj was also offered at dated minus 60 cents.

* Dalia was discussed at dated minus $3.20 a tonne.

* Angola’s president has appointed a government team to help to reorganise Sonangol and its oil sector as it suffers from the oil price drop.

NIGERIA

* Some 10-15 cargoes are left from the November programme. Some grades, such as Qua Iboe, are believed to be sold out.

* At least 60 cargoes are planned for December loading, putting it largely on par with November. Forcados could total nine cargoes, which would make it the longest programme for that grade since January.

* Nigeria’s state oil firm NNPC has begun auctioning annual crude term contracts on live television and vowed to cut the number of contract holders by a third in a drive to boost transparency.