According to Bloomberg article published on January 12, 2023, one of the global oil market’s key swing suppliers is signaling a pickup a demand.
West Africa’s sales of crude for loading next month have increased in recent days, according to two traders who specialize in the region’s crude.
Atlantic Basin oil majors such as Exxon Mobil Corp. and Phillips 66, as well as Asian giants like China’s Unipec, have stepped up their purchases for February-loading, the people said. Unipec purchased between three and four shipments of West African crude so far this week alone, alongside other supplies from the US and the Middle East.
The West African sales suggest improving demand for the region’s crude after a slow start to the February trading cycle that got under way in mid-December. It may also signal the start of a pickup in China’s buying as the nation discards its longstanding Covid-Zero policy.
About four-fifths of Angola’s crude for February loading has now been sold, according to the people. Meanwhile, three out of five shipments for next month of the Republic of the Congo’s Djeno crude — a grade typically popular with Asian buyers — have also found final destinations.
Still, Nigeria — another of the region’s main suppliers — is as yet struggling to find destinations for its output. More than 20 cargoes of Nigerian crude for February are unsold, almost half of the 44 shipments scheduled.
Nigeria revived its production last month after a string of output woes including oil theft and technical glitches curtailed output from major grades like Forcados and Bonny Light. The OPEC producer faces stiffer competition in Europe, its main customer, where imports from the US have been trending higher and rival Libyan volumes are also back on the market.
