The availability of around 35 to 40 West African crude cargoes is fast creating an overhang, with May loading programmes due to start emerging on Wednesday, Reuters reports.
Monthly discussions between producers and state-owned NNPC on crude allocations have been taking place this week and May loading programmes could start trickling out as early as Wednesday. Some March loading cargoes were still available, including an end-March Agbami with Statoil.
Bonga cargoes were on offer at high premiums of dated Brent plus $1.30 for April due to field maintenance in March. Shell was said to have some in floating storage, putting a cap on gains. Vitol and other traders have been offering crude from storage, which is also weighing on the market.