Traders said on Monday that ample supply was weighing on the value of Nigerian crude, Reuters reports.
Nigerian Qua Iboe was heard to be on offer at about dated Brent plus $1.00, down 10 cents from offers heard on Friday. The narrowing contango in the Brent market has reduced the incentive to store barrels, weighing on prompt values. Vitol last week sold a Qua cargo to Petroineos from storage in Saldanha Bay in South Africa, a trader said. Up to 20 cargoes from the April programme were still said to be available.
Shell, which traders said on Friday had probably won IOC’s latest buying tender, is likely to be supplying 2 million barrels of Nigerian crude, a trader said on Monday. Another Indian refiner HPCL is running a tender for first-half May-loading cargoes. The tender closes on March 22. Taiwan’s CPC is running a buy tender for full-month May-loading crude. The tender closed on Monday.