London, December 16: Asian refiners have sharply slowed purchases of West African crude oil for January after a price spike made Atlantic Basin grades too expensive, traders said on Thursday. So far Asian buyers have picked up the equivalent of only around 10 January-loading very large crude carriers (VLCCs) of West African crude oil, well down from 15 and more in December and November, traders said.While there is still time for more January buying, so far eastbound flows of West African grades look like falling below 700,000 barrels per day from well over a million bpd in the last two months.
European crude prices spiked in late November following disruptions to Iraqi and Iranian exports, making West African grades priced off North Sea Brent less attractive to eastern refiners than closer alternatives.
Asia's main January buyer has again been state-owned Indian Oil Corp (IOC), taking a total of four VLCCs combining Nigerian Escravos and Bonny Light as well as Angolan Palanca. IOC's purchases are well down from a November peak of eight VLCCs. Taiwan's state-owned Chinese Petroleum Corp (CPC) took two West African VLCCs in its January tender, including Angolan Palanca, Congolese Djeno and Cameroonian Kole.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.