Nigerian crude differentials still under pressure from excess supply

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Nigerian differentials have come under yet more pressure due to thin buying interest on the back of uncertain loadings, Reuters reports.

Offer levels were falling for several Nigerian crude oil grades, with Qua Iboe now available from different sellers at premiums of as low as 75 cents to dated Brent. One buyer said they had received no fewer than six offers of Qua Iboe, underscoring the excess. Nearly every grade was still on offer, with a total of some 30 February-loading cargoes. Exxon sold a cargo of Erha crude, though the buyer and the premium were unclear.

Shell had recently offered Bonny Light at a premium of $1.10 per barrel to Brent, but buyers said the price would have to be far lower. Shell and Litasco were also offering Bonga at premiums of around $1.40 per barrel. Final submissions were due in a tender from India’s IOC, with the award expected on Thursday. While the request was for March-loading crude oil, traders were expected to try to place end-February loading barrels into it due to the excess of unsold Nigerian cargoes.

 

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