• Sub-Saharan producers delay crude sales despite available April-loading cargoes.

• Supply disruptions linked to Strait of Hormuz closure support higher price expectations.

• Rising freight costs and pricing premiums affect demand, particularly in Asia.

Oil producers in sub-Saharan Africa are delaying sales and holding back several cargoes, according to Reuters, which cited four crude traders active in the market.

The region supplies global markets with light, low-sulfur crude that refiners in Asia and Europe actively seek. However, sellers are not rushing to close deals despite continued demand.

According to market sources, around 20 cargoes scheduled for April loading remain available. Nevertheless, producers are postponing transactions or redirecting part of their output toward local refining.

As a result, export flows have slowed. Cargoes from Nigeria, Angola, and Republic of the Congo remain on offer, but negotiations are taking longer than usual.

Moreover, some crude grades are trading at premiums above benchmark prices. Nigerian Bonny Light crude trades at about $7.5 per barrel above Brent crude, which stands at around $108 per barrel, according to market data.

This market behavior occurs as the closure of the Strait of Hormuz disrupts global oil flows. The strait handles roughly 20% of global oil supply, and its shutdown reduces available supply on the market.

In this context, some sellers are delaying sales in anticipation of higher prices. At the same time, shipping costs are rising sharply. Higher freight rates increase the final cost of African cargoes for buyers. Consequently, some Asian refiners, which represent the main outlet for sub-Saharan crude, are shifting toward more competitive supply sources.

Sub-Saharan Africa produces between 2.6 million and 2.7 million barrels per day, according to the International Energy Agency.

Last week, Fatih Birol raised the possibility of additional releases from strategic reserves. He warned that the disruption at this key transit route continues to threaten global energy security.

This article was initially published in French by Abdel-Latif Boureima

Adapted in English by Ange J.A de Berry Quenum