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W. Africa Crude-Differentials stable

ReutersFeb 28, 2025 6:25 PM

- 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.

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