India’s IOC issues fresh tender for Bonga, Bonny Light as arbitrage east opens

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Spot trading was quiet as new tender demand emerged from India while benchmark oil prices on which West African crudes are priced were again volatile on Friday, but the spread between those and Dubai crude remained narrow, making arbitrage east possible, Reuters reports.

India’s IOC took at least two cargoes of Nigerian oil as part of its tender awarded on Thursday, a trader said. The firm’s award included Bonga and Bonny Light.

A fire at SPDC’s Trans Niger Pipeline was still smoking as of Thursday evening, locals said. Traders expected further loading delays as a result of the problems, though Shell said it had not declared force majeure.

Bonga loadings are also expected to be lower in February as a result of field maintenance. Operator Shell declined to comment on whether there was work planned.