There seems to be a glimmer of hope for unsold cargoes of crude in the global market as India’s International Oil Companies, IOCs issued a new buy tender for West African Crude.
The newly issued buy tender for the West African crude that will be loading between June 9-18, 2020 will close on May 13.
Around 10 cargoes of June-loading Angolan crude were still available, with the July program due to emerge at the end of the week with Chevron offering June-loading Nemba at dated Brent minus 70 cents.
Recall that excess supply is collapsing crude prices and threatening energy producers. A total of 60 Nigerian crude oil cargoes have not been sold despite the reduction of the official selling prices by the Nigerian National Petroleum Corporation.
A glut of Nigerian and Angolan crude weighed on the market with demand from China slower than in the last few weeks.
The Nigerian National Petroleum Corporation, NNPC was reported in March to have cut its April official selling prices for Bonny Light and Qua Iboe, two of the nation’s major grades, by $5 per barrel to dated Brent minus $3.29 and minus $3.10 per barrel, respectively.
In a bid to restore balance, The Organization of the Petroleum Exporting Countries OPEC and allies agreed to cut output by 9.7 million barrels per day (BPD), or almost 10 percent of global supply, in May and June. The United States and others also offered to pump less. But even this may not be enough when the demand has slumped by as much as 30 percent.
OPEC and its allies want to maintain existing oil cuts beyond June when the OPEC+ group is next due to meet to shore up prices and demand, which has been hit by the coronavirus pandemic, four OPEC+ sources said.
