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W. Africa Crude-IOC tenders offer hope, European demand still dismal

June 3 (Reuters) – Some traders hoped a couple of
Indian oil tenders could mop up oil to reduce a significant glut
of Nigerian oil while European demand for West African grades
remains nearly nil amid sluggish refining activity.

* India’s IOC has two buy tenders running mostly seeking
West African crude. One is for 2 million barrels cargoes loading
July 4-13 and the other for 1 million loading Aug. 1-10 and both
are set to close on Friday.
* India has been a key outlet for Nigerian crude, with
repeated tenders sometimes closing with no awardee only to
resurface seeking the same grades and delivery dates, as the
major importer seeks to secure low prices for orphaned barrels.
* A backlog of floating storage continues to hit demand,
especially in Europe, where the appetite for new imports will
need to wait until the storage backlog is cleared.
* Nigerian oil continues to attract almost no buyers there,
as refinery activity remains muted amid poor margins and slow
demand for some oil products.
* Unprecedented producer cuts especially on heavier grades
have dealt a boon to Angolan oil, for which there has been
significant Chinese demand.
* At over a dozen cargoes still yet to be sold for July,
Angolan crude is selling at around the same pace as before the
global coronavirus pandemic.