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West Africa Discounts Heavily in Buyer's Market

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  • Soaring freight costs have disadvantaged West African crude in long- and medium-haul markets Asia and Europe.
  • Angola is caught between Chinese pandemic policies and ruinous arbitrage economics.
  • Lobbying delays Nigeria price setting as term customers seek to clear December overhang cargoes.

Sellers of December-loading West African crude face a perfect storm of weak demand, strong competition and a closed arbitrage window to Asia, forcing aggressive discounts across most crude grades. As of Nov. 22 buyers said further discounting would be necessary to make West Africa more competitive in what is undeniably a buyer's market.

Topics:
Oil Term Contracts, Crude Oil, Oil Supply, Oil Trade
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