A recoil in buying of Nigerian oil as a result of force majeure and uncertainty in the country have led to a firm rise in demand for Angolan oil from major crude buyers China and India for July, a Reuters survey of shipping fixtures and traders showed.
India’s IOC has booked several grades of Angolan crude for July, including Cabinda and Girassol, as its favoured Nigerian Qua Iboe crude oil was under force majeure when the purchases were made. “People want stable supply. And Angolan crude is in general very reliable … there are no fears about force majeure,” said Ehsan Ul-Haq, a principal consultant with KBC.
China’s buying has also skewed toward Angolan grades, though state-backed refining company Unipec and teapot refiners typically process heavier crudes than India. Indonesian buying also returned in force, with Pertamina taking four cargoes, including those booked by Total, Shell and Socar. (Energy Mix Report)