Angolan oil exports to increase

Published Aug 16, 2012

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Angola's crude oil exports are set to rise in October by around 100,000 barrels per day (bpd) from a 15-month low the previous month, a preliminary loading programme showed on Thursday.

Exports are set to average 1.67 million bpd in October, up from 1.57 million bpd the previous month. The exports amount to a total of around 52 million barrels due to load on 54 tankers.

The rise could result in another drop in the premium on prices of Angolan crude compared to dated Brent oil in the African market, which fell to 11-month lows in early August, and result in more exports to Asia.

“I think it will work with other sentiment in the market to depress a little the differentials in Angolan barrels,” said a West African crude oil trader.

One factor that has helped supplies recover is the lifting of Total's force majeure on its loadings of Angolan crude oil following a production glitch in July.

This grade, one of the biggest streams alongside Cabinda, Dalia and Pazflor, is due to load six cargoes in October compared with five in September.

Volumes of Mondo and Pazflor are also set to rise in October from September.

Angola is Africa's second largest producer, behind fellow OPEC member Nigeria. Its exports briefly rivalled Nigeria's in early 2010 but have since fallen back due to a natural decline at some fields and maintenance work. - Reuters

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