West African crude differentials were stable in the week’s final session on Friday, as markets waited for fresh developments on U.S. trade tariffs.
* Differentials have been stable throughout the week, with many market participants convening in London for the annual International Energy Week and associated events.
* U.S. President Donald Trump on Thursday said his proposed 25% tariffs on Mexican and Canadian goods will take effect on Tuesday, along with an extra 10% duty on Chinese imports.
* Traders are waiting to see how tariffs could alter global trade flows.
* “The U.S. Gulf Coast should pull medium and heavy crude from Latin America (except Venezuela), potentially even the North Sea and Middle East,” Sparta Commodities’ analyst June Goh said.
* March-loading cargoes of West African crude – especially for medium and heavier grades – received support from a spur in buying interest from Asia as Chinese and Indian refiners sought alternatives to Russian barrels after sweeping U.S. sanctions on January 10.
* Top oil exporter Saudi Arabia may slightly cut its crude prices for Asian buyers in April, tracking the marginal decline in benchmark prices this month, traders said on Friday.
* Earlier this week traders said Angola’s Sonangol was yet to finalise its term allocations for April cargoes.
* Angolan grades were also largely stable this week.
* Nigerian Bonny Light crude was last offered at dated Brent plus $1.80. Traders were also awaiting the release of Nigerian April schedules this week.
Source: Reuters