The demand for heavy sweet crudes fell as middle distillate refining margins tanked in Eastern and European markets, with jet fuel hard-hit.
Traders said price offerings for heavy, sweet crude varieties ideal for refining into jet fuel were collapsing, especially in Asia due to an outbreak of coronavirus in China
Which has led to multiple cancelation of flights by scores of airlines.
In Europe jet fuel margins are a little better; it has been hovering around the lowest levels since 2017. Equinor was offering a cargo of Angolan Dalia crude for loading in March 23-24 on the Platts window for dated Brent plus $1.40, among the lowest offers in a year.
Despite the repair to a stricken pipeline announced on Tuesday Shell is yet to lift its force majeure over exports of Bonny Light crude.
Sellers stuck to sky-high offers for lighter Nigerian grades, betting that European customers, deprived of competing Libyan varieties by political instability there, will buy.
Asking prices for scarce Bonny Light crude continued at dated Brent plus $3.50 and around plus $3.00 for Qua Iboe.
India’s HPCL issued a buy tender for crude cargoes that will be loading between March 10-20. The tender bids remain valid until January 31 while Indonesia’s Pertamina issued a buy tender for crude for April 15-17 or 8-10 delivery depending on the port. Bids are due by January 30 and remain valid until February 3.