Demand for West African (WAF) crude appears to have cooled considerably, with Nigeria and Angola still left with sizable overhangs of cargoes scheduled for November loading, a trader said on Thursday.

There are about 15 to 20 cargoes of Nigerian crude and 3 to 4 cargoes of Angolan crude still on offer for November loading, the trader said.

An overhang of this magnitude is fairly unusual, especially at this stage of the trading cycle, traders and analysts say, noting that the demand deficit is largely linked to a jump in freight costs and a drop in refining margins.

As a result, WAF differentials are under pressure.

Plans for December loading for both countries emerged in recent weeks.
Source: Reuters (Reporting by Natalie Grover in London; Editing by Kirsten Donovan)