W.Africa Crude-Differentials steady as traders mull Russia sanctions impact

LONDON, Oct 23 (Reuters) - West African crude oil differentials were little changed on Thursday, as traders weighed the possible knock-on effects of fresh U.S. and EU sanctions on Russia on other crude markets.

Both buyers and sellers are in wait and see mode, one trader said on Thursday.

U.S. President Donald Trump hit Russia's two biggest oil companies with sanctions in a sharp policy shift on Moscow's war in Ukraine, prompting global oil prices to rise by 5% on Thursday and India to consider cutting Russian imports.

Stronger freight rates and a return to backwardation on the Brent forward curve have also impacted arbitrage economics for shipments to Asia, the trader added.

The West African market was already quiet this week as traders awaited term allocations, according to one trade source.

No offers have been made for December yet, a trader said on Thursday, while a small overhang of November cargoes also remains.

Tenders coming up include Hindustan Petroleum Corp Ltd for January and Pertamina for early December, but neither company is expected to buy much West African crude in those, the source said.