W. Africa Crude-Angolan still offered high despite glut, freight costs

 LONDON, Oct 1 (Reuters) - Price offerings for some grades of
Angolan crude oil remained high despite generally flagging
Chinese demands as new shipping fuel rules loomed for next year. ANGOLA * State oil company Sonangol was offering a cargo of
November-loading Cabinda at $3.50 and Chevron closer to $3.00,
traders said. * The rates were higher than cargoes for previous months and
comes despite steep freight costs, backwardation and a slowdown
in buying from some Chinese independent refiners. * The price gambit appeared related to robust East Asian
demand for oil types like Cabinda suited to refining into
low-sulphur shipping fuels ahead of new Jan. 1 global rules. * Still, at just 24 cargoes, Angolan exports to China in
September were among the lowest in years. * A small handful of cargoes remain for export in October,
in the longest supply glut for Angola this year. NIGERIA * At 25 cargoes, Nigerian exports to Europe were the lowest
since last June amid ample supply from the North Sea and United
States. * Demand was set to be more robust for the nearly 20 cargoes
still left for export in October as prices offers have dipped
enough for buyers to make purchases despite flattening margins. * Freight rates for ships fixtured to transport West African
crude spiked around 30% late last week due to U.S. sanctions on
Chinese shipping giant Cosco. * Those prices eased slightly however, as relatively few
ships were scheduled to transport West African crude Eastward
compared especially to exports from the Gulf. RELATED NEWS * U.S. oil production growth is decelerating gradually in
response to lower prices, which should reduce predicted
over-supply in 2020 and force the global oil market back towards
balance. * State-owned Abu Dhabi National Oil Co (ADNOC) has chosen
the Intercontinental Exchange (ICE) to launch a regional oil
benchmark based on its Murban crude grade by next year, three
sources familiar with the matter said. * The U.S. Justice Department has closed investigations into
alleged corruption by oil major Eni in Nigeria and
Algeria without taking any action, the Italian energy group said
on Tuesday. * Nigeria will make cuts to its crude oil output to comply
with OPEC output targets, Mele Kolo Kyari of the Nigerian
National Petroleum Company (NNPC) said on Tuesday. (Reporting By Noah Browning; Editing by Alex Richardson and
Richard Chang) ))

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