Monday, August 2, 2010

WAfrica Crude-Steady as limited buying balances tight supply

* Qua Iboe valued around dated plus $1.90, steady

* Nigerian offer levels higher but market reported stable

* IOC issues first buying tender for October

LONDON, Aug 2 (Reuters) - India's biggest refiner, state-run
IOC, tendered to buy its first October loading cargoes of crude
oil on Monday helping underpin values in a tight market.

But traders said Chinese buying had eased off a little from
the very high levels seen in recent months and this weaker
demand has helped balance the impact of much tighter supplies
for September, particularly of Angolan crude.

Angolan exports in September will be down sharply, loading
programmes show, while Nigerian output was also due to be lower
than the previous month.

Weak refining margins have also helped keep a lid on the
differentials for light Nigerian crude oil.


* Qua Iboe: September offers were quoted well above dated
Brent plus $2.10 but buyers were much lower and the last
reported deal was at dated Brent plus $1.90, traders said.

"I don't see much upside for Qua Iboe from here," said one
West African crude oil trader with an Asian-owned house.

* Erha: Canadian company Irving was reported to have picked
up two Erha cargoes for September, one at around dated Brent
plus $2.00 and the other at closer to plus $2.20. Shell's two
Erha cargoes, for loading Sept. 7-8 and 19-20 were both reported
to have been sold.


* Sonangol was reported to have only one September cargo
left to sell, a Kuito for loading Sept. 28-29.

* Nemba: assessed around dated Brent minus 50 cents

* Cabinda: assessed at around the level of the last deal, at
dated Brent minus 20 cents.


* Indian Oil Corp (IOC) has tendered to buy its first
October loading crude oil after importing a record volume of
crude for September lifting. Part I of the tender will close on
Aug. 3, part II on Aug. 5 with offers valid until Aug. 6, a
tender document received by Reuters showed. [ID:nLDE6711IN]

* In its last tender on Friday, IOC bought 2 million barrels
of West African crude for September lifting, taking its spot
purchases for that month to a record 14 million barrels ahead of
a planned expansion of one of its refineries in northern India.

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