Nigeria’s crude oil glut lingers

Nigeria’s crude oil glut lingers

Friday, November 13, 2015 12:25 am

Nigerian crude oil differentials were expected to come under further downward pressure due to a persistent backlog of unsold cargoes, traders said on Thursday.

As many as 40 cargoes in Nigeria’s December export programme and about 10 in November’s schedule are unsold, they said. The ample supply is likely to weigh on differentials even though falling Brent prices will boost refining margins.

“Margins are better as the flat price decline will help,” said one trader. “But there is still a lot of oil around.”

There are still around 10 Angolan cargoes available for December just ahead of the release of the next month’s programme.


* Qua Iboe was offered at dated Brent plus $1.00. One trader said sold prices for December cargoes could weaken to as low as dated parity, which would be a multi-year low.

* The grade was valued at dated Brent plus 40 cents, steady from earlier this week and the lowest since January.

* Cargoes of November-loading Bonny Light, Brass River and Forcados are still looking for buyers and most grades for December are available.


* A number of grades for December loading are left and the January loading programmes are expected to emerge as soon as Monday.

* Pazflor is the least in demand, as around three cargoes are left. One dealer valued the grade at below dated Brent minus $4.00.

* Other grades still available are two cargoes each of Dalia and CLOV, a trader said.


* Pertamina is running a tender to buy cargoes of a small list of grades, including Akpo, Cabinda and regional Asian crudes.


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