Asia buys African and Brazilian oil as shipping costs fall
SNP•Asian buyers have increased purchases of African and Brazilian crude as tanker freight rates fell about 50% from October peaks. Delivered costs to China for African and Brazilian crude have fallen $5 to $10 a barrel from last month.
1. Asian buyers secure cargoes
Unipec bought two cargoes of Congolese Djeno crude at discounts of about $22 a barrel to dated Brent on a free-on-board basis. Unipec and SK Energy also provisionally chartered vessels to load West African crude for Asia in December at lower freight rates.
2. Freight rates retreat
Freight rates for VLCC, Suezmax and Aframax tankers have fallen about 50% from last month's peaks, Baltic Exchange data showed. A trader said delivered costs for African and Brazilian crude to China had fallen $5 to $10 a barrel from last month.
3. Crude premiums ease
A Chinese independent refiner bought 1 million barrels of Angolan Plutonio crude at about $15 above ICE Brent, compared with premiums above $20 a fortnight earlier. Brazilian Tupi crude last traded at a $7-$8 premium to December dated Brent for January arrival, down from premiums near $20 last month.
