• Friday, March 29, 2024
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BusinessDay

WAF crude: Nigerian July spot cargoes remain, traders report Saturno outage

Oil firm brings succour to host community as thousands receive free medical service

A sizeable Nigerian crude oil overhang looms as a handful of spot cargoes remained for July loading. Around 6-8 cargoes of Nigerian crude were heard to remain for July loading. Higher production on the Forcados and Bonny light streams for August loading suggests Nigeria may have a sizeable overhang when new programmes emerge next week even amid higher demand.

Data from the US Energy Information Administration showed the US had imported no Nigerian oil in its latest survey period, also importing none from Kuwait and Venezuela. However, high European gasoline cracks provided an incentive for imports of Nigerian oil, as the Philadelphia refinery outage has boosted margins and gasoline exports from Europe. BP sold two cargoes, an Escravos and Okono, to CEPSA as southern European gasoline margins were also robust.

Meanwhile, traders reported an outage to the Saturno crude stream offshore Angola. The traders said a days-long outage at the Saturno offshore field was behind the deferral of a cargo of the grade by state oil company Sonangol to next month. It was not possible to immediately confirm the outage nor whether it was planned or due to maintenance with Sonangol or BP, which operates the block. Sonangol had first offered a cargo of the grade for a-august 29-30 loading after already delaying it once and will now offer it for September 2-3.

Chad’s August-loading programme of heavy sweet Doba crude was heard to have sold out, amid strong demand for such grades due to looming marine fuel regulations and the absence of comparable Iranian and Venezuelan grades.