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Saturday, April 27, 2024 4:23 GMT
Exports of Algeria's Saharan Blend crude fell by 4% on the month to 362,000 b/d in August, driven by a decline in shipments to Asia-Pacific.Argus tracking data show Saharan Blend exports to Asia-Pacific dropped to 86,000 b/d last month. That was 33% lower than July although still slightly above the first-half 2021 average of 82,000 b/d. The month-on-month fall reflects a lack of exports to Malaysia and Thailand, where demand was crimped by Covid lockdown restrictions. This was partially offset by around 1mn bl of Saharan Blend leaving Arzew for Mumbai on 4 August, marking only the second cargo of Algerian crude to head for India this year. Prior to the outbreak of the global pandemic, one shipment of Saharan Blend loaded for India every month between May 2018 and February 2020. The decline in Asian demand for Saharan Blend last month was mitigated by a rise in exports to Algeria's core customers in northwest Europe and the Mediterranean. Combined shipments to the two regions rose by 8% on the month to 243,000 b/d in August, representing the second-highest monthly volume this year. Exports to Italy edged up to 32,000 b/d, after falling to an eight-month low in July. Shipments to France rose by 9% on the month to 92,000 b/d. And one cargo of Saharan Blend loaded for the Netherlands, whereas no shipments went to the country in July. Transatlantic exports of Saharan Blend inched up to 33,000 b/d in August, thanks to a cargo of around 1mn bl leaving Arzew for Portland in the US at the end of the month. This was the first Saharan Blend cargo to sail for the US since October last year. The majority of Algeria's August-loaded cargoes are likely to have traded in July. Argus spot assessments for Saharan Blend averaged a near 12¢/bl premium to the North Sea Dated benchmark in the first half of July. But the price differential dropped to an average discount of close to 22¢/bl in the second half of the month amid ample available supply of rival US WTI and west African grades.