West African Crude: Nigerian differentials near multi-year lows

Nigerian crude differentials were close to multi-year lows on Tuesday, weighed down by ample supply and sluggish demand from Asia and Europe.
Around 20 of Nigeria’s 65 cargoes in August remained available, a relatively high number for this point in the trading cycle when attention is shifting to the next month’s cargoes.

Still, some traders have said the drop in differentials could boost demand, possibly into the U.S. Gulf Coast.

NIGERIA

Qua Iboe was valued at between dated Brent plus 70 cents a barrel – the level of the latest official selling price – and just below dated plus $1.00 by two traders.

A differential of dated plus 70 cents would be the lowest since 2009 based on Reuters data.

September loading programmes out so far point to 52 cargoes, or 1.61 million barrels per day, of Nigerian crude.

Some programmes, including the Brass River schedule, are not yet available.

ANGOLA

The last indications from Sonangol were as follows.

Traders said spot dealing has been slow so far as the offers are somewhat higher than the last known trades.

– CLOV: -$2.50
– Dalia: -$3.00
– Girassol: -$0.20
– Hungo: -$2.50
– Kissanje: -$1.20
– Nemba: -$1.50
– Plutonio: -$1.50
– Saturno: -$5.50
– Saxi: -$0.70

ASIAN TENDERS
Indian refiner BPCL was thought to have purchased Agbami and Qua Iboe in a tender, a trader said.

Another refiner, HPCL, is also running a tender this week.

Reuters