Indian buying stops slide in Nigerian crude oil differentials

Nigerian crude oil differentials paused on Tuesday after succumbing to downwards pressure earlier this week as Indian buying helped to provide support.

Bharat Petroleum Corporation Ltd. (BPCL) bought two cargoes of Nigerian crude oil for July and August loading via a tender,
traders said.

Weak refining margins in one of the main markets for West African crude oil has sapped demand in recent sessions and around half of July cargoes are still available, traders said.

“It’s a quiet market. Refiners aren’t buying,” said one trader.

Angolan sales were also sluggish on Tuesday, traders said, citing a lack of interest from Asian buyers due to an unprofitable arbitrage.

The premium of Brent to Dubai prices DUB-EFS-1M has fallen slightly in early June to around $4.30 a barrel, although remains far above levels receorded earlier this year.

NIGERIA

 Qua Iboe: Assessed unchanged at about dated Brent plus $2.60-$2.70. This was about 20 cents below last week.

Supply of Nigerian crude is more plentiful in July than June. Nigeria is set to export about 1.87 million barrels per day (bpd) in July, up from 1.8 million bpd in June, according to the loading programmes.

ANGOLA

In an unusual move, BP and another trading firm were offering West African crude oil grades in the Platts window earlier this week, traders said.

A Hungo cargo was offered in the window on Monday at dated Brent minus $1.70 a barrel.

Cabinda was offered in the window at dated Brent plus 5  cents.

ASIAN TENDERS

Indian oil refiner BPCL has bought Qua Iboe and Agbami cargoes from Glencore for its latest tender for July and August loading, traders said on Tuesday.

Indian Oil Corp issued a tender on Friday for August-loading crude, a trader said. The result is expected on
Thursday.