The latest China bound VLCC crude laden vessel is marking its biggest month of buying from Nigeria in years as it ramps up its crude exports.
The VLCC Athenian Success is bound for Lanshan after loading from Akpo and Egina in the last few days. The nearly 3 million barrels of Nigerian exports to China in the last 30 days are the most since the summer of 2015.
China’s crude exports in July surged 75 per cent from a year ago, with its products reaching as far afield as Nigeria and Mexico. A little over 10 Nigerian cargoes remained for export in September.Selling prices for some Nigerian grades were heard to be roughly in line with the official selling prices (OSPs), which had been marked down this month on sluggish U.S. and European demand.
More Asian gasoil is expected to head to Europe as buyers take advantage of the biggest seasonal price gap between the two regions in at least seven years. India’s IOC issued two tenders for loading October 11-20 and November 1-10, set to close on Wednesday. While U.S. sanctions on Iran’s oil industry have slashed the OPEC member’s crude exports by more than 80 per cent, oil product sales from the Islamic Republic remain strong at nearly $500 million a month.
Top oil exporter Saudi Arabia is expected to raise prices for light crude grades it sells to Asia in October on stronger Middle East benchmarks and gasoil margins, several trade sources said on Monday, according to Reuters.
Meanwhile, oil prices fell yesterday declining for a second day as more signs emerged of the toll from the U.S.-China trade war, with South Korea revising down second-quarter growth due to lower exports.The U.S. crude was down 32 cents, or 0.6 per cent at $54.78 a barrel while Brent was 7 cents lower at $58.59 a barrel.
The United States this week imposed 15 per cent tariffs on a variety of Chinese goods and China began to impose new duties on a $75 billion target list, deepening the trade war that has rumbled on for more than a year.U.S. President Donald Trump said both sides would still meet for talks later this month. South Korea’s economy turned out to have expanded less than estimated during the second quarter as exports were revised down in the face of the prolonged U.S.-China trade dispute, central bank data showed on Tuesday.
The move on Sunday by Argentina to impose capital controls is also casting a spotlight on emerging market risks. “What’s bad for the outlook for global growth is bad for oil at the moment and only big draws in inventories can delay that drift lower,” said Greg McKenna, strategist at Mckenna Macro.Data due this week on U.S. inventory levels will be delayed by a day to Wednesday and Thursday due to the U.S. Labor Day holiday on Monday.
Russia aims to fully comply with an agreement during September to cut oil production among OPEC and some non-OPEC producers, Russian Energy Minister Alexander Novak said in a statement on Monday.
Oil output from the Organization of Petroleum Exporting Countries (OPEC) rose in August for the first month this year as higher supply from Iran and Nigeria outweighed restraint by top Saudi Arabia and losses caused by U.S. sanctions on Iran.The OPEC, Russia and other non-members, known as OPEC+, agreed in December to reduce supply by 1.2 million bpd from January 1 this year. OPEC’s share of the cut is 800,000 bpd, to be delivered by 11 members and exempting Iran, Libya and Venezuela.