• 2 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 5 minutes Middle East on brink: Oil tankers attacked off Oman
  • 8 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 2 hours Iran downs US drone. No military response . . Just Completely Destroy their Economy. Can Senator Kerry be tried for aiding enemy ?
  • 13 mins California and Oil
  • 3 hours The Inconvenient Truth Of Electric Cars
  • 7 hours The Plastics Problem
  • 3 hours Win Against Tyranny: Turkey's Opposition Strikes Blow To Erdogan With Istanbul Mayoral Win
  • 3 hours Ireland To Ban New Petrol And Diesel Vehicles From 2030
  • 12 hours Solar Panels at 26 cents per watt
  • 8 hours Hydrogen FTW... Some Day
  • 2 hours Green vs. Coal: Bavaria Seeks Fast-Track German Coal Exit in Snub to Merkel Plan
  • 18 hours NATO Article 5: Attack on one member is attack on all. Members all must come to defense . . . NOT facilitate financial transactions to circumvent and foil US Sanctions. Somebody please tell Angela.
  • 17 hours Summit in Pyongyang: China's Xi Says World Hopes North Korea-U.S. Talks Can Succeed
  • 14 hours What's more Important Iran Nuke Deal or Strong China Trade Deal. Hypothetically, If China offered Trump North Korean and Iran deals in exchange for concessions on trade deal should he take it ?
  • 3 hours Here We Go: New York Lawmakers Pass Aggressive Law To Fight Climate Change
  • 18 hours Huge UK Gas Discovery

Breaking News:

Oil Pipelines Sabotaged In Syria

Libya’s Oil Production Could Double Within 5 Years

Libya’s Oil Production Could Double Within 5 Years

Frequent field outages and security…

Global Oil Market Surprisingly Oversupplied

Global Oil Market Surprisingly Oversupplied

Despite OPEC oil production cuts…

Chinese Oil Buyers Wait For Lower Prices To Buy African Crude

Angola oil

Chinese refiners are not rushing to finalize deals for oil cargoes from West Africa for August, expecting prices of crude grades from Angola to drop from recent highs as the global oil benchmark slumped and the market structure points to weakening premiums for prompt deliveries, Reuters reported on Monday, quoting refining and trading sources in Asia.

China’s refiners are currently in the market looking for supplies for August, but they are not jumping to close deals because the Brent Crude backwardation—the market situation in which front-month prices are trading at a premium compared to prices further out in the future—has sharply narrowed, pointing to possible weakening of the spot prices, industry sources told Reuters.  

Sources at Chinese refineries told Reuters that the differentials of West African crudes are still very high, making imports unprofitable.

In addition, refining margins in Asia have been recently pressured and dropped to their lowest in 16 years, with refiners across the region said to be considering cutting run rates.

Although refiners in Asia are not left without choice for crude after the end of the U.S. sanction waivers for Iranian oil, the higher price of alternative supplies, as well as soaring fuel exports from China, are depressing refining margins across Asia.

Chinese refiners, for their part, have been stocking up on crude oil in the first half of this year, so there would probably be a slowdown in oil imports in the third quarter, Seng Yick Tee with Beijing-based consultancy SIA Energy told Reuters.

Last week, sellers of Angolan and Nigerian crude grades started to reduce offers for cargoes in July because high shipping costs to Asia had been discouraging buyers, trade sources told Reuters.

Because buyers in Asia have not been pleased with the high prices of cargoes from Angola, the offers of Angolan grades—both heavy and light crudes—were revised down by between US$0.20 and US$0.30 a barrel last week, according to trade sources who spoke to Reuters.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News