West Africa Crude: Nigerian differentials seen weak

Angolan crude oil differentials were steady on Tuesday, supported by better sales for September loading cargoes, but prospects for Nigerian oil looked less favourable, traders said.

There were only around 10-15 cargoes of a total of 55 Angolan crude oil available for September loading around 10 days before October cargoes come to market.

State oil firm Sonangol had sold all of its available cargoes, traders said, with the remaining vessels held by traders and oil companies.

This was more in line with the pace of sales at the start of the year, indicating that it was unlikely that differentials would fall further.

A lower premium of Brent crude to Dubai DUB-EFS-1M has helped make West African cargoes relatively attractive to Asian buyers.
Nigerian oil, however, was still out of favour despite the lowest differentials in around five years, with more than half of September’s loading programme available for purchase according to traders.

NIGERIA

Qua Iboe: Traders assessed September barrels at dated Brent plus 80 cents to plus $1. This compares to a premium of above $3 in May.

Loading programmes point to Nigerian exports reaching their highest daily rate since May 2013. Nigerian crude oil exports were set to be at a 16-month high of 1.9 million barrels per day in September, loading programmes indicated.

ANGOLA

Dalia was priced at around dated Brent minus $4-$4.50 and Girassol around dated Brent minus $1.70, both substantially weaker than for earlier months this year.

Saturno was offered at a discount to dated Brent of around $6.50 late last week.

There were just one or two Girassol cargoes left and Cabinda and Kissanje were sold out, a trader said.

– Reuters