October 10, 2019 / 4:13 PM / 9 days ago

W. Africa Crude-Spot trade grinds to a halt as freight rates skyrocket

    LONDON, Oct 10 (Reuters) - West African grades were under
strong downward pressure on Thursday with little on offer as
high freight rates, a result of U.S. sanctions on Chinese
shipping firm COSCO, spooked buyers.

    * In the Platts window in yesterday's session, Trafigura
sold a 950,000 barrel cargo of Forcados to Total at dated Brent
plus $1.70 a barrel loading Nov. 12-13. 
    * The deal was $1 lower than Trafigura's offer for the same
grade on Monday. 
    * "It’s hardly worth trying to offer something now if you’re
showing dated Brent plus $6 or $7 including freight, it’s just
getting silly," a trader said.
    * Angola's state oil firm lowered its offer level for its
cargo of Cabinda to dated Brent plus $2.50 from over $3 earlier
this week and Dalia was being shown at dated Brent plus $2.20.  
    * India's IOC issued a new tender for west African crude
loading Nov. 24 to Dec. 3 closing later this week. 
    * Nigeria is seeking $62 billion from oil companies under
regulations that allow the government to revisit revenue-sharing
deals on petroleum sales if crude prices exceed $20 a barrel,
the attorney general told Reuters on Thursday.             

 (Reporting By Julia Payne; Editing by Kirsten Donovan)
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