W. Africa crude: Market subdued as outlook turns more bearish
USO•West African crude trading was subdued, with no deals in the Platts window and market talk pointing to weakening values as outright prices and other physical markets fell.
1. Trading and prices
A trade source said there were no deals in the Platts window and that market talk suggested values were weakening. Freight rates had fallen from record highs on some West African routes, while a market source in late October valued Qua Iboe at dated Brent plus $1.35 a barrel and Bonny Light at plus $1.40.
2. Market signals
Indian Oil Corp cancelled a tender on Tuesday because offers were very high; it was unclear Wednesday whether a new tender had been issued. North Sea crude differentials weakened sharply, a move that could spill over into West African markets.
