W. Africa crude — lower freight rates in focus
USO•Lower freight rates are expected to help West African crude cargoes find buyers as weaker outright prices and declines in other physical crude markets weigh on differentials.
1. Freight and demand
Freight rates have fallen further from record highs on some West African routes. Nigeria’s Dangote refinery took some December-loading cargoes in a Wednesday tender, including Nigerian barrels, a trade source said; Nigerian grades remained at a premium to dated Brent. In late October, a market source valued Qua Iboe at dated Brent plus $1.35 a barrel and Bonny Light at plus $1.40.
