October 11, 2019 / 4:10 PM / 2 months ago

W. Africa Crude-Nigerian crude diffs crash as freight rates bite

    LONDON, Oct 11 (Reuters) - Differentials for Nigerian crude
oil grades continued to crash on Friday with the key grade being
shown at its lowest level since 2005 owing to still rising
freight rates as a result of U.S. sanctions on China's shipping
company COSCO.

    * Phillips 66 tentatively chartered a supertanker to ship
U.S. crude from the U.S. Gulf Coast to South Korea for a record
$14 million this week, sources said Thursday.             
    * Traders and ship brokers said that rates were still rising
beyond that level and that Bonny Light had been offered down to
around dated Brent flat, down from close to a $2.50 premium to
dated Brent last week.
    * In the Platts window, Cepsa bought a cargo of Amenam at
dated Brent minus $1.55 cents a barrel from Total loading Nov.
    * Bonny Light and Qua Iboe typically trade no more than
$1-$1.10 a barrel above Amenam, further illustrating the market
collapse, a trader said. 
    * Forcados crashed earlier this week after Trafigura sold a
cargo $1 below an offer level on Monday. 
    * Cepsa also bought Bonny Light and Abo from Eni and
Escravos from Equinor, traders said. Price details did not
immediately emerge. 
    * India's IOC awarded its latest tender for west African
crude loading Nov. 24 to Dec. 3 to Total, Chevron and Shell. 
    * India's HPCL issued a buy tender for crude loading in the
first quarter of next year. Details will emerge next week. 
    * Highly sought after types of oil best suited to making
cleaner shipping fuel are suddenly finding they are a tougher
sell for thirsty East Asian markets, traders say, in an
unintended consequence of U.S. sanctions on a Chinese shipping

 (Reporting By Julia Payne; Editing by Kirsten Donovan and Deepa
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