• 30 mins Oil Production Cuts Taking A Toll On Russia’s Economy
  • 3 hours Aramco In Talks With Chinese Petrochemical Producers
  • 4 hours Federal Judge Grants Go-Ahead On Keystone XL Lawsuit
  • 5 hours Maduro Names Chavez’ Cousin As Citgo Boss
  • 12 hours Bidding Action Heats Up In UK’s Continental Shelf
  • 17 hours Keystone Pipeline Restart Still Unknown
  • 21 hours UK Offers North Sea Oil Producers Tax Relief To Boost Investment
  • 23 hours Iraq Wants To Build Gas Pipeline To Kuwait In Blow To Shell
  • 1 day Trader Trafigura Raises Share Of Oil Purchases From State Firms
  • 1 day German Energy Group Uniper Rejects $9B Finnish Takeover Bid
  • 1 day Total Could Lose Big If It Pulls Out Of South Pars Deal
  • 1 day Dakota Watchdog Warns It Could Revoke Keystone XL Approval
  • 2 days Oil Prices Rise After API Reports Major Crude Draw
  • 2 days Citgo President And 5 VPs Arrested On Embezzlement Charges
  • 2 days Gazprom Speaks Out Against OPEC Production Cut Extension
  • 2 days Statoil Looks To Lighter Oil To Boost Profitability
  • 2 days Oil Billionaire Becomes Wind Energy’s Top Influencer
  • 2 days Transneft Warns Urals Oil Quality Reaching Critical Levels
  • 2 days Whitefish Energy Suspends Work In Puerto Rico
  • 2 days U.S. Authorities Arrest Two On Major Energy Corruption Scheme
  • 3 days Thanksgiving Gas Prices At 3-Year High
  • 3 days Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 3 days South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 3 days Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 3 days Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 3 days Iraq Steps In To Offset Falling Venezuela Oil Production
  • 3 days ConocoPhillips Sets Price Ceiling For New Projects
  • 6 days Shell Oil Trading Head Steps Down After 29 Years
  • 6 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 6 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 6 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 6 days Venezuela Officially In Default
  • 6 days Iran Prepares To Export LNG To Boost Trade Relations
  • 6 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 6 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 7 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 7 days Rosneft Announces Completion Of World’s Longest Well
  • 7 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 7 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 7 days Ecuador Seeks To Clear Schlumberger Debt By End-November
Has The Big Oil Fire Sale Started?

Has The Big Oil Fire Sale Started?

The world’s largest sovereign wealth…

Demand For Angola’s Oil In Asia Increases

Barrels

Japan’s biggest refiner has just imported two of Angola’s crude grades for the first time in three years in a move that non-traditional buyers of Angolan oil like Japan could replicate soon, due to the narrow spreads that now exist between Brent and Dubai, and to lower freight rates, Platts reported on Thursday, citing industry sources.

This month, JXTG Nippon Oil & Energy imported a very large crude carrier (VLCC) loaded with Angola’s Cabinda and Kissanje grades, the first Japanese import of the Cabinda variety since 2012 and the first such acquisition of Kissanje since 2014.

In May this year, Idemitsu imported 998,135 barrels of the Girassol crude grade, the first such import since April 2012, and the most recent Japanese import of Angolan oil before JXTG Nippon Oil & Energy’s delivery this month.

The narrowing quality spread between low-sulfur varieties and the Middle East’s high-sulfur grades has made low sulfur grades more appealing economically to non-traditional buyers of West African crudes in the East, sources told Platts.

“I don’t see [Japan] overly active in the market but there’s been an odd cargo here or there,” one West African crude trader told Platts, while another described JXTG’s latest acquisition as likely “opportunistic.”

Due to narrower spreads between the Brent and Dubai benchmarks, and to lower prices amid rising refining margins, West African oil grades have become more competitive over the past month, and spot demand has picked up.

Related: The $10 Trillion Resource North Korea Can't Tap

Asian demand for grades other than those from the Middle East has increased overall, not only for West African crude, with cargoes from the U.S., Latin America, and South America also managing to sell well, according to Platts.

Meanwhile, Angola’s oil exports are expected to hit a 13-month high of 1.7 million bpd in October, Reuters reported last month, citing a loading program. Angola’s September cargoes sold very well due to robust demand in Asia, lower Venezuelan exports, and rising refining margins.  

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