Nigeria crude-lack of spot buyers pressure differentials

A good portion of the Nigerian loading programme, or more than 30 percent of the just under 2 million barrels per day (bpd) offered for export in September, are still available traders say pressuring differentials.

Traders said that slower-than-expected restarts at the country’s four oil refineries could also lead to additional cargoes of Bonny Light, Escravos and Qua Iboe coming to the spot market.

Some Nigerian grades, such as Qua Iboe, were largely sold out, but roughly 30 percent of September’s cargoes are still available.

Nigeria plans to export 1.99 million bpd in September, its highest exports since January.

Brazil’s Petrobras booked a cargo of Forcados, according to shipping fixtures, a rare purchase.

A second part of a tender from India’s IOC to buy October-loading crude oil is due later this week. Last week, the company bought four million barrels of West African crude including Brass River and Agbami from Chevron and Qua Iboe and Zafiro from Statoil.

West African crude trading was quiet on Monday as buying interest was thin.

Traders said offer levels had not softened, and some sellers were more interested in storing crude oil or delaying deals than lowering prices.

“Demand from the east isn’t very good,” one trader said. “Angola is coming down.”

Unipec, the largest buyer of Angolan crude oil, stopped offering cargoes during the afternoon trading session.

The Chinese company’s offers in the past several weeks had sparked expectations of more weakness, particularly as sources said that it was lowering its refinery runs.

Traders said there are likely still surplus cargoes available, but sellers are waiting for would-be buyers to come forward to keep prices from spiralling lower.