February 4, 2011 / 3:58 PM / 8 years ago

W.Africa Crude-Light grades strengthen further

* Qua Iboe around dated plus $2.30/$2.50

* India’s IOC tenders to buy sweet crudes for April loading

LONDON, Feb 4 (Reuters) - Light sweet West African crude oil differentials rose further on Friday on strong demand from European and Mediterranean region buyers.

Several light Nigerian crudes have high yields of middle distillates but relatively low fuel oil content, making them highly attractive at a time when the spread between gas oil and Brent futures is close to a two-year high but fuel oil spreads are the worst they have been for months.

Heavier Angolan crude grades were more sluggish, but most of the March loading programme has now cleared and selling levels were not as weak as reported earlier in the month, traders said.

Indian refiner IOC has issued its first tender to buy sweet crudes lifting in April and is expected to take as much as 10 million barrels again for the month in a series of spot tenders.


* Qua Iboe: relaxed sellers reported to have been pitching March loading offers around dated Brent plus $2.50, as much as 30-40 cents above levels seen for February cargoes; bids generally around dated Brent plus $2.30.

* Most Qua Iboe cargoes for March loading were reported sold. Vitol was said to have taken both the March 16-17 and March 21-22 Qua Iboe cargoes.

* Bonny Light: talked at parity to Qua Iboe

* Brass River: buyers and sellers reported at 5-10 cents below Qua Iboe.


* Almost all the Angolan March programme has moved, with even heavy grades cleared at prices above previous offers, traders said.

* Dalia: Angolan state oil producer Sonangol had been asking dated Brent minus $2.50 for two Dalia cargoes lifting mid-March and both were reported to have been sold at or close to dated minus $3.00. Exxon was said to have available the last Dalia cargo loading in March, lifting March 29-30.

* Mondo: Vitol was said to be offering a Mondo loading March 15-16, a cargo initially held by Exxon, traders said.


* State-run Indian Oil Corp has issued a tender to buy sweet crude oil for loading in April. IOC has asked for price offers by Feb. 15, grade offers by Feb. 16 and offers must be valid until Feb. 17. IOC bought at least 10 million barrels of crude oil via spot purchases for loading in March and is expected to take similar quantities for lifting in April. [CRU/TENDA]

For a database of oil supply and demand fundamentals upstream and downstream, Reuters subscribers can click here (Reporting by Christopher Johnson; editing by Jane Baird)

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