Crude oil loading from Nigeria, others for Asia to slip in January

Crude oil loading from Nigeria and other   countries in the West African sub region for Asia is expected to slide more than 10 percent in January as some buyers opt for regional grades or cargoes in floating storage, a Reuters survey of traders and shipping data showed weekend

Some 1.808 million barrels per day (bpd) are scheduled to load from Nigeria, Angola, Ghana and other West African

Producers over the coming month, down from December’s 17-month high of 2.1 million bpd.

   Meanwhile loading delays on ExxonMobil’s crude exports, which included Qua Iboe and Erha, has also impinged on demand as buyers worried about demurrage costs.

There was no fresh trading has been reported despite some cargoes loading Jan. 15-20 being available for purchase

The bulk of the delays were because of strikes this last month over layoffs by oil companies.

Workers of ExxonMobil had gone on strike because the management of the company had planned to retire some of them with very fat severance packages ranging between N140  to N300 million but some of the workers are resisting the deal which they described in-appropriate because of the time of its implementation.

But the demand from China is however described as still good, with buyers in China underpinning price differentials for Angolan oil in particular, but the slip highlighted the fierce competition for Eastern buyers in an oversupplied oil market.

 Buying in Indonesia accounted for the largest portion of the drop, falling to just one cargo from seven in December.

State oil company Pertamina had purchased most of its cargoes via tenders awarded to traders including Chevron and Trafigura, who could supply it from oil loaded in other months or from storage.

“If there are any regional grades at better prices, or oil in storage, they could go for that,” one trader said.

  Chinese buying dipped by just two cargoes, while Indian buyers took one additional cargo compared with December.  Nigerian exports suffered another setback as SPDC closed the Trans Niger Pipeline, which carries Bonny Light, because of a fire. Trading quickened for medium crude grades, with China’s Unipec booking several cargoes.

Oil price benchmarks on which West African sale prices are based were volatile as OPEC heavyweight Saudi Arabia showed signs of supply cuts, but U.S. stocks of gasoline and diesel rose, casting that nation’s oil demand in doubt.

.Traders said that Bonny Light loadings are likely to be delayed as a result, joining Qua Iboe, Usan and Erha in facing revised loadings.

Primary demand for Nigerian crude has been via tenders from India, but Monroe Energy had also provisionally booked the Sabine to carry Agbami to the U.S. Atlantic Coast.

Olusola Bello with agency report