W.Africa Crude - Differentials steady amid volatile flat price

LONDON, July 27 (Reuters) - West African crude oil differentials were stable on Monday, as market participants mulled a sharp drop in the futures market.

• Brent futures lost over 7% on Monday to below $90 per barrel, after the U.S. and Iran paused strikes over the weekend, raising investors' hopes of a diplomatic solution to quell recent escalation in the conflict. O/R
• Last week, West African sellers were beginning to hike ask prices for cargoes amid supply disruptions in other regions, traders said, but the market was largely in wait-and-see mode.
• As well as by disruptions in the Middle East, global oil supply has been further dented by reduced output in Kazakhstan. Kazakh oil output has more than halved to around 1 million bpd since its main export terminal at Russia's Novorossiysk was closed following drone attacks.
• West African, Brazilian and Guyanese crudes could substitute for disrupted Middle East supplies, a trader said on Friday.
• Lighter West African grades could also substitute for lost Kazakh exports in the Mediterranean, Kpler analysts wrote last week.