West Africa Crude: Nigeria diffs at lowest since January, supply ample

Differentials of Nigerian crude oil fell to their lowest since January on Tuesday, squeezed by ample supply and anaemic European demand which has led refinersin the region to cut runs.

Nigeria will export around 1.87 million barrels per day of crude oil in August, in line with planned July exports, shipping lists seen indicated on Tuesday.

Exports are higher than those seen earlier in the year, putting pressure on differentials that are under pressure due to slack European demand.

There were 10 to 15 cargoes out of 63 July cargoes still for sale even as the majority of August loading cargoes had come to market.

Angolan cargoes, which were fast to sell earlier this year, have failed to move in the spot market more than a week after they came to market.

Weak differentials for North Sea and Urals oil has forced sellers of West African crude to lower asking prices, but buyers are holding out for further falls.

A high premium of Brent crude oil, against which West African grades are benchmarked, to Dubai crude DUB-EFS-1M, has deterred Asian buyers from buying as heavily as they have in previous months.

ANGOLA

Initial offers from Sonangol for August cargoes were as follows, relative to dated Brent. A trader said these had not changed from Friday.

— Dalia: -$1.80
— Hungo: -$1.60
— Kissanje: -$0.30
— Mondo: -$1.60
— Nemba: -$1.00
— Palanca: +$2.50
— Plutonio: -$1.75
— Saturno: -$2.80
— Saxi: -$0.30