Angolan Nemba crude hits largest premium in two years

The Angolan Nemba crude, premium to heavier grade Hungo crude, has hit a near two year high as the naphtha-rich grade gains support from soaring Nigerian crude values, Platts has said.

Platts assessed Nemba at Dated Brent plus $0.60/barrel and Hungo at Dated Brent minus $2.12/b, resulting in a $2.72/b spread. It is the widest since April 21, 2011.

According to Platt, “It’s just been the Nigerian market, it’s very strong,” a source said of Nemba’s strength.

Naphtha-rich Nemba is the lightest Angolan grade assessed by Platts, and its composite yield is comparable to some Nigerian grades. Hungo is the second-heaviest Angolan grade assessed by Platts.

Nigerian differentials have been on a sharply bullish run through 2013-to-date on solid demand, with values hovering in recent weeks at near two-year highs. Nemba’s upward trajectory has been particularly stark.

According to Platts, since November 14, when Nemba was assessed at Dated Brent minus $1.455/b, its differential has steadily climbed in the subsequent months, gaining a cumulative $2.05/b. During the same period, Hungo’s value has varied little.

But bearish pressures are building, sources said, from a combination of weakening refining cracks, and the near-completion of May program buying, leaving a decent overhang. Naphtha cracks in particular have been exceptionally weak, falling to the lowest level this week since July 2012.

“Margins have collapsed,” a source said. “The whole complex is turning down, you can’t deny that.” But WAF crude differentials have so far held steady, sources said.

The Angolan Nemba crude, premium to heavier grade Hungo crude, has hit a near two year high as the naphtha-rich grade gains support from soaring Nigerian crude values, Platts has said. Platts assessed Nemba at Dated Brent plus $0.60/barrel and Hungo at Dated Brent minus $2.12/b, resulting in a $2.72/b spread. It is the widest since April 21, 2011. According to Platt, “It’s just been the Nigerian market, it’s very strong,” a source said of Nemba’s strength. Naphtha-rich Nemba is the lightest Angolan grade assessed by Platts, and its composite yield is comparable to some Nigerian grades. Hungo is the second-heaviest Angolan grade assessed by Platts. Nigerian differentials have been on a sharply bullish run through 2013-to-date on solid demand, with values hovering in recent weeks at near two-year highs. Nemba’s upward trajectory has been particularly stark. According to Platts, since November 14, when Nemba was assessed at Dated Brent minus $1.455/b, its differential has steadily climbed in the subsequent months, gaining a cumulative $2.05/b. During the same period, Hungo’s value has varied little. But bearish pressures are building, sources said, from a combination of weakening refining cracks, and the near-completion of May program buying, leaving a decent overhang. Naphtha cracks in particular have been exceptionally weak, falling to the lowest level this week since July 2012. “Margins have collapsed,” a source said. “The whole complex is turning down, you can’t deny that.” But WAF crude differentials have so far held steady, sources said.


The Angolan Nemba crude, premium to heavier grade Hungo crude, has hit a near two year high as the naphtha-rich grade gains support from soaring Nigerian crude values, Platts has said. Platts assessed Nemba at Dated Brent plus $0.60/barrel and Hungo at Dated Brent minus $2.12/b, resulting in a $2.72/b spread. It is the widest since April 21, 2011. According to Platt, “It’s just been the Nigerian market, it’s very strong,” a source said of Nemba’s strength. Naphtha-rich Nemba is the lightest Angolan grade assessed by Platts, and its composite yield is comparable...


The Angolan Nemba crude, premium to heavier grade Hungo crude, has hit a near two year high as the naphtha-rich grade gains support from soaring Nigerian crude values, Platts has said. Platts assessed Nemba at Dated Brent plus $0.60/barrel and Hungo at Dated Brent minus $2.12/b, resulting in a $2.72/b spread. It is the widest since April 21, 2011. According to Platt...