Tenders dominated the West African crude market on Monday, with Nigerian crude differentials also remaining at a relatively high level, Reuters reports.
Trading of Nigerian oil was limited by the pending tenders, as most of the buyers often take the nation’s oil. Sellers kept differentials at a relatively high level, offering Bonny Light as high as $2.20 a barrel above dated Brent. Strong demand for lighter grades, due in part to disruptions elsewhere, had boosted seller ideas, but spot trading was moving slowly in general.
India’s BPCL purchased a cargo of Nigeria’s Okwuibome in its tender that closed last week, a trader said, but the seller was not immediately clear. Indonesia’s Pertamina did not award its tender, instead reissuing it with bids due on January 10. Uruguay’s Ancap and India’s IOC were also running tenders for West African crude for loading in early to mid-March.