Algerian crude exports flat in March

Market: Crude oil
05/04/22

Exports of Algeria's flagship Saharan Blend crude were broadly unchanged in March compared with the previous month, with rising European demand for the grade offset by a fall in cargoes bound for Asia-Pacific.

Saharan Blend loadings were 389,000 last month, compared with 390,000 b/d in February, preliminary Argus tracking data show. Exports averaged 375,000 b/d in 2021.

Inclement weather conditions may have prompted delays in the March loading schedule. The ports of Arzew — where most Saharan Blend cargoes are loaded — and Bejaia closed for a few days last month because of bad weather.

Exports to northwest Europe and the Mediterranean rose by nearly 5pc on the month to 304,000 b/d in March. The increase in European demand coincided with a shortage of competing light sweet grades. Most March-loading cargoes of Russian Siberian Light were cancelled or delayed, and Azeri Light cargoes loading from Supsa in the Black Sea in the second half of the month were cancelled because of security concerns related to the Ukraine conflict.

Appetite for Saharan Blend held steady despite Algeria's state-owned Sonatrach lifting its official March formula price by 35¢/bl to a $3.05/bl premium to the North Sea Dated benchmark, the widest premium in over 10 years.

The increase in shipments to northwest Europe and the Mediterranean was led by a 117pc jump in loadings to the UK to 105,000 b/d. Exports to Spain rose by 29pc on the month to 95,000 b/d, while shipments to Italy soared by nearly 108pc to 70,000 b/d. Loadings bound for France fell for a second consecutive month, down by nearly 45pc to 34,000 b/d. Neither Portugal nor the Netherlands took any Saharan Blend in March

Shipments to Asia-Pacific fell by 14pc to 85,000 b/d last month, with exports to India down by 15pc to 33,000 b/d, loadings to South Korea 13pc lower at 19,000 b/d and shipments to Thailand down by 13pc to 32,000 b/d. There were no transatlantic shipments of Saharan Blend for a third consecutive month.

By Elena Mataro

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