by Nesa Subrahmaniyan

18-06-08 Asian refiners cut West African crude oil imports in June to the lowest in 10 months as buyers led by China Petroleum & Chemical Corp. reduced purchases because of weaker refining profit and higher shipping costs.
Asian imports will fall 36 % to 830,000 bpd this month from May's 1.3 mm bpd, Vienna-based energy consultant JBC said in a report. Oil shipments to China from West Africa in July will increase 8.5 % while total Asian imports may rise by 46 % to 1.2 mm bpd from June, JBC said.

Chinese refiners reduced imports of the more-expensive West African crudes because fuel-price controls led to lower refining margins when raw material costs rise, JBC said. Indian refiners, which buy grades including Nigeria's Escravos and Qua Iboe, turned to Malaysia and Azerbaijan for cargoes because of supply disruptions in the African nation.
"Relatively low domestic refinery margins and high freight rates prompted a reduction from China, where tax breaks buoyed product imports,'' JBC said. Rebel attacks at Royal Dutch Shell's Nigerian production facilities and a strike at ExxonMobil's operations "encouraged more purchases of competing Malaysian crude and Azeri Light.'' Brent crude oil, a benchmark for Europe and Africa, rose to a record $ 139.32 a barrel on June 16.

India's imports
Indian Oil Corp. (IOC), the biggest buyer of West African crude from India, bought more cargoes in July because of increased demand for diesel and gasoline, JBC said.
"Asian demand for West African grades for July is likely to have increased by more than 400,000 bpd compared to June,'' JBC said. "The large volumes purchased from India may have offset low interest from China.''

West African oil shipments in July to Asia may reach 1.21 mm bpd, and increased purchases from Taiwan helped to boost imports, JBC said. Taiwan bought 150,000 bpd of "more economical crudes from Angola and Equatorial Guinea'' for July, JBC said.
Most crude oil from West Africa is classified as light and sweet. They yield more gasoline, diesel and kerosene after processing compared with Middle Eastern varieties.