Demand remains lacklustre for Nigerian cargoes, traders said on Tuesday, although business should pick up now that loading programmes for alternative grades have been issued.
Around half of October’s 63 Nigerian cargoes have yet to find buyers. Business has been slow as many potential buyers have been waiting for the North Sea and Mediterranean loading programmes – most of which have now been released.
“The Nigerian is struggling a little bit,” a trader of the crude said. “Fundamentally, there is an oversupply of light, sweet crude oil.”
Angolan cargoes, by contrast, have sold relatively rapidly, and at levels slightly above those for September loading, which were at multi-year lows, supported by higher demand and wider refining margins.
Qua Iboe: Offers for October cargoes are at dated plus $1.80, a trader said, in line with Monday but lower than last week. Traders expected deals to be done closer to dated plus $1.00.
Nigeria is scheduled to export about 1.86 million barrels per day of crude in October, according to loading schedules.
Only around six October cargoes out of 55 initially offered for sale are still available.
Dalia: Two cargoes of this grade are for sale and on offer at dated minus $3.00, a trader said.
IOC will issue a tender next week for November-loading barrels, traders said.
BPCL is running a tender for October- and November-loading cargoes and traders expect the result this week.