China’s West African oil buying spree hits record in February

February 6, 2017 9News Nigeria Asia, Business, China 0

(Repeats Friday story, no change to text)
    * China purchases centred on Angolan crude
    * Graphic: tmsnrt.rs/2dG0SuJ

    By Libby George
    LONDON, Feb 3 (Reuters) - China's red-hot crude oil buying
will push its February loadings of West African crude to their
highest in at least 13 years, a Reuters survey of traders and
shipping data showed on Friday.    
    Buying for China, led by state-run Unipec and Sinochem but
joined by some trading houses supplying the independent
refineries, hit a total of 40 cargoes for February loading. 
    At a level of 1.36 million barrels per day (bpd), this is
the highest since Reuters began tracking the shipments in 2004. 
    The purchases boosted overall shipments to Asia from West
Africa to 2.31 million bpd, their highest since April 2015, and
28 percent above the previous month on a bpd basis. 
    The buying was driven in part by a narrow spread between
Brent and Dubai crudes DUB-EFS-1M, which makes West African
grades more competitive in Asia.        
    Michal Meidan, Asia analyst with Energy Aspects, said the
figures were "not overly surprising given the OPEC production
cuts and Asia's need for alternative barrels".
    Production cuts of 1.8 million bpd by the Organization of
the Petroleum Exporting Countries (OPEC) and other oil producers
have sent refineries scrambling to source alternative medium and
heavy crude oil. Falling oil output in China has intensified the
need for alternatives. 
    Meidan added that Chinese buyers are also stocking up in
anticipation of higher oil prices in the second half of the
year. 
    The Chinese buying centred on Angolan crude, with less than
a dozen cargoes of the loading plan from that nation sailing to
destinations outside Asia. 
    But China's state-run refineries also bought one cargo of
lighter oils, including Nigeria's Bonga and Akpo condensate.
Other Asian buyers have also boosted purchases of light sweet
oil, including Nigerian grades, pushing regional grades lower.
   
    
 COUNTRY     February     BPD '000s  January   BPD '000s
             cargoes                 cargoes   
 CHINA       40           1,357      38        1,165
 INDIA       18           611        16        490
 INDONESIA   3            102        1         31
 TAIWAN      2            68         2         61
 JAPAN       0            0          0         0
 S. KOREA    1            34         0         0
 OTHERS      4            136        2         61
 TOTAL       68           2,307      59        1,808
 
 (Editing by David Goodman)

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