Shell Petroleum Development Corporation has lifted the Force Majeure declared on the Bonny Light crude from the Nembe Creek Trunk Line, which caught fire early this month. Expected demand from Europe has been linked as one of the motivations for this, with the hope of selling at higher prices.
Despite June loading remaining 20 cargoes that could be cleared by next week, more demand is expected from Western countries. European refiners are expected to make more demand to supply for the U.S. Summer months.
Marathon Petroleum from the U.S. is set to take cargoes of West African crude via very large crude carriers (VLCC) to begin loading in June that will continue for three months. The Qua Iboe grade to be sold at 2.70 U.S. dollars, Forcados to go at 3.40 U.S. dollars and finally Escravos to be sold at 3.30 U.S. dollars.
Turkey’s Tupras issued a buy tender for a cargo of West African crude for delivery between June 25 and July 10. It was set to close on Wednesday.
Data for Angola’s July loading is being expected but three cargoes of oil crude still remain to be sold for June. Asian demand is still high but has been weighted down due to widening DUB-EFS-1M at 3.15 U.S. dollars a barrel for BRENT on Monday.
China is expected to buy more Angola oil to satisfy demand particularly with sanctions on Iran and Venezuela but can not rule out buying from these countries.
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