Asia buys up African, Brazilian oil as shipping costs fall
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Asian buyers are snapping up African and Brazilian oil as shipping costs fell from record highs.
- ✓Traders said lower freight rates made these cargoes cheaper.
- ✓"Softer long-haul VLCC freight rates are making west of Suez grades more attractive," analysts noted.
Story at a Glance
- Category
- Indian Markets
- Reported By
- Reuters
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
SINGAPORE, Nov 11 (Reuters) - Asian buyers have been snapping up Atlantic Basin crude at lower prices after tanker freight rates on cargoes from Africa and Brazil slumped from all-time highs, traders, shipbrokers and analysts said.
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A major buyer of West African and Brazilian oil, Unipec bought two cargoes of Congolese Djeno crude from at discounts of about $22 a barrel to dated Brent on a free-on-board basis last week, two people who deal in West African grades said.
The Chinese trader has also provisionally chartered two Suezmax-sized tankers to load West African crude for Asia at worldscale rates of 475 and 410 in late November to early December, and a very large crude carrier (VLCC) on the same route for loading in early December at W500, according to ship brokerages. Worldscale is an industry tool to calculate freight charges.
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Reuters
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