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Amanda Cooper

China to cut W. African oil imports in November, S Korea imports surge

Nov 14 2018

* W. African crude exports to Asia https://tmsnrt.rs/2MNuxkU By Amanda Cooper LONDON, Nov 13 China will cut imports of West African oil to the lowest in seven months in November due to the higher cost of shipments, while South Korean imports from West Africa will reach to an 11-year high as U.S. sanctions hit Iranian crude supplies. West African loadings to Asia will fall to about 2.33 million barrels per day (bpd) this month, equivalent to 70 percent of total exports from Angola, Nigeria, Republic of Congo, Ghana and Equatorial Guinea, based on Reuters calculations, shipping brokers and Refinitiv Eikon data. This compares to October's 2.52 million bpd, or 75 percent of total regional exports. Demand from Asian refiners for Nigerian and even Angolan crude, which tends to be favoured by Chinese buyers, sagged over the course of October and early November, as higher shipping costs made the trip uneconomical. Shipping rates for carrying West African oil on a very large crude carrier (VLCC) to China hit a nine-month high in October of more than $50,000 a day . The International Energy Agency said in its report this month that falling Iranian exports, driven down by U.S. sanctions, were pushing Asian refiners to source oil from further afield with longer journey times, driving up shipping costs. U.S. investment bank Jefferies said average VLCC spot charter rates rose to more than $40,000 a day in late October for the first time since the fourth quarter of 2016. China will import about 1.33 million bpd of mostly Angolan crude in November, down from October's record 1.935 million bpd, while South Korea will take about 167,000 bpd of West African oil. South Korea has till now typically taken only occasional West African cargoes, because it has tended to rely more heavily on Middle East or North Sea suppliers. But it has now said it would cut Iranian purchases because of U.S. sanctions on Iran and has sought out other suppliers, starting with a cargo of Congolese Djeno that loaded this month. India's refiners will take 567,000 bpd of West African crude in November, up from 452,000 bpd in October, most of which was purchased via tenders rather than on the spot market. Glencore, Shell, Norway's Equinor and Chevron, among others will supply the Indian market with a combination of Nigerian and Angolan grades. https://tmsnrt.rs/2MNuxkU Below is a table of West African exports to major Asian buyers: Nov cargoes Bpd (Mln) Oct cargoes Bpd (Mln) China 40 1.333 60 1.935 India 17 0.567 14 0.452 Indonesia 2 0.067 2 0.065 Taiwan 4 0.133 1 0.032 S Korea 5 0.167 1 0.032 Japan 0 0.000 0 0.000 Others 0 0.000 0 0.000 TOTAL 70 2.333 80 2.516 (Reporting by Amanda Cooper Editing by Edmund Blair)

Global oil market faces surplus throughout 2019 as demand growth slows

Nov 14 2018

LONDON Global oil supply will outpace demand throughout 2019, as a relentless rise in output swamps growth in consumption that is at risk from a slowing economy, the International Energy Agency said on Wednesday.

Global oil demand under growing threat from electric cars, cleaner fuel

Nov 13 2018

LONDON Electric vehicles and more efficient fuel technology will cut transportation demand for oil by 2040 more than previously expected, but the world may still face a supply crunch without enough investment in new production, the International Energy Agency (IEA) said on Tuesday.

Global oil demand under growing threat from electric cars, cleaner fuel

Nov 12 2018

LONDON Electric vehicles and more efficient fuel technology will cut transportation demand for oil by 2040 more than previously expected, but the world may still face a supply crunch without enough investment in new production, the International Energy Agency (IEA) said on Tuesday.

Global oil demand under growing threat from electric cars, cleaner fuel

Nov 12 2018

LONDON, Nov 13 Electric vehicles and more efficient fuel technology will cut transportation demand for oil by 2040 more than previously expected, but the world may still face a supply crunch without enough investment in new production, the International Energy Agency (IEA) said on Tuesday.

Iranian oil: 40 years of revolution, war, sanctions and bans

Nov 02 2018

LONDON Nearly 40 years after the 1979 Islamic revolution saw the exit of Western oil companies from Iran, the Iranian oil sector faces yet another costly disruption after a series of interruptions from war, sanctions and diplomatic isolation.

Mercuria predicts new wave of consolidation in global oil trading

Nov 01 2018

LONDON Global energy trading businesses are set for a new wave of consolidation as rising interest rates and high oil prices compress already thin profit margins, said Mercuria, one of the world's biggest oil traders.

Mercuria says oil near $70 is litmus test for producer strategy

Nov 01 2018

LONDON The world's largest oil producers could reverse their strategy of raising output and revert to reduction mode if the price of crude holds near $70 a barrel into next year, Mercuria Chief Executive Marco Dunand said on Thursday.

UPDATE 1-Nigeria shores up fuel needs ahead of 2019 election with BP deal

Nov 01 2018

(Adds background detail, NNPC statement, BP comment) By Julia Payne and Amanda Cooper LONDON, Nov 1 Nigeria's state oil firm NNPC said on Thursday that it had signed a crude-for-product deal with BP for the next six months to help meet the country's gasoline needs over the holidays and ahead of its general election early next year. Despite being Africa's biggest oil producer and an OPEC member, Nigeria is almost wholly reliant on fuel imports as its refineries barely function after years of neglect and infrastructure sabotage. Periodic fuel shortages are common with cars lining up at the pump sometimes for days, especially during the Christmas period. Incumbent President Muhammadu Buhari, whose popularity is already sagging, cannot afford to be seen as unable to meet the needs of Nigeria's 190-million population. It was not immediately clear what volume would be allocated to BP. NNPC already has 10 similar deals for a total of just over 300,000 barrels per day of crude out its close to 1.9 million bpd of production as of October. NNPC initially announced on Twitter late on Wednesday without providing details. BP declined to comment. In its statement, NNPC said the arrangement with BP would account for 20 percent of the west African country's total gasoline needs. NNPC imports about 70 percent of Nigeria's fuel needs, mainly gasoline, via swap contracts known as Direct Sale Direct Purchase (DSDP). Foreign firms must pair up with a local company to deliver the products. NNPC said that BP will be partnered with Nigerian firm AYM Shafa. BP was not originally among the companies with whom NNPC signed DSDPs. "BP's partnership with AYM Shafa...makes it a perfect fit for our plans to ensure that there is adequate supply of products throughout the coming Yuletide and even beyond the election period," NNPC managing director Maikanti Baru said, adding that AYM Shafa has 150 retail outlets and depots. The existing contract holders that include trading houses Vitol, Trafigura, Mercuria and French oil major Total started in mid-2017. NNPC extended the existing DSDP contracts to June 2019 but several trading sources in the consortiums have requested new price terms, sources with direct knowledge said. Higher oil prices this year have helped boost Nigeria's foreign exchange reserves, but the weakness in the country's currency against the U.S. dollar has forced the central bank to spend billions to keep the naira stable and prevent an unwelcome spike in its import bill. Nigeria has been using swaps for about 10 years. NNPC launched the DSDP model in 2016 and under it, NNPC sells crude oil to refiners or trading houses, who in return, supply mainly gasoline but also other petroleum products such as diesel. Trader/Refin Local partner(s) Volume (minimum ery expected) Trafigura AA Rano 33,000 bpd Petrocam Rainoil/Falcon Crest 33,000 bpd Mocoh Heyden 33,000 bpd Cepsa Oando 33,000 bpd Sahara SIR 33,000 bpd Mercuria Matrix/Rahmaniya 33,000 bpd Socar Hyde 33,000 bpd Litasco MRS 33,000 bpd Vitol Varo 33,000 bpd Total Total 33,000 bpd 10 Groupings 330,000 bpd (Reporting by Julia Payne, additional reporting by Paul Carsten in Abuja; Writing by Amanda Cooper; Editing by Alexandra Hudson)

Vitol sees oil prices falling as demand growth falters

Oct 30 2018

LONDON Oil prices will likely fall next year as demand is curbed by trade wars and weakness in emerging market economies, the world's biggest oil trader Vitol predicted on Tuesday.

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