West Africa crude: Overhang weighs, new programs due
LONDON (Reuters) -- West African crude differentials were coming under pressure on Thursday from an overhang of unsold cargoes, pending the imminent release of new loading programs that will boost availability further.
The rise in outright crude prices since November due to supply cut pledges by OPEC and non-OPEC countries plus higher freight rates is dampening demand, traders said.
NIGERIA
Around 35-40 cargoes of Nigerian crude for January loading are awaiting buyers - a higher number at this point in the trading cycle than in recent months, traders said.
Qua Iboe was last heard offered at dated Brent plus $1.20 but one trader said deals would be likely at less than dated Brent plus $1.00.
The loading plans for Nigerian crude in February are set to emerge next week and there are signs supplies could be high. The oil minister said on Thursday that production is rising.
ANGOLA
About 10 January-loading cargoes are left, including CLOV, Girassol and Hungo.
The February loading program is expected to emerge on Friday.
Indian refiner HPCL is running a tender to buy crude oil loading on Feb. 1-15. It closes next week.
Reporting by Alex Lawler; Editing by Ruth Pitchford
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