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W. Africa Crude-Some Nigerian oil differentials slip below dated Brent

Published 19/08/2020, 17:25
© Reuters.

LONDON, Aug 19 (Reuters) - Punishingly low sales are pushing
offers for lighter Nigerian crude oil down, as demand in
European and South Asian markets drops.

* At least 40 cargoes of Nigerian crude oil for export in
August and September are yet to find a buyer as October
programmes are expected shortly.
* Bonny Light and Qua Iboe crude grades were still being
offered at around dated Brent plus 25 cents, but with few of the
cargoes clearing, traders expect them to sell for below zero.
* Maintenance at some European refineries in the next couple
of months is expected to push prices down further.
* Cheap U.S. crude is muscling out Nigerian and Angolan
crude lately in key markets India and China, respectively.
* Two Indian buy tenders in the last week, from IOC and
HPCL, were not awarded to Nigerian crude, clouding price
expectations and signalling weaker demand.

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as soon as the fourth quarter of 2020, the Saudi Energy minister
said on Wednesday while urging OPEC members and allies to boost
compliance with oil output cuts aimed at supporting prices.
* A limited reopening of Libyan oil terminals could allow
the export of some crude oil and condensate stored at Es Sider,
Brega, Zueitina and Hariga, but leaves a months-long blockade of
the ports in place, oil engineers say.

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