Glut looms as buyers reject Nigerian crude

Nigeria’s oil supply to the international market is facing glut as ample supply of light and medium grades from the North Sea and the Mediterranean are limiting buying interest for Nigerian crude, traders said. This is coming as Angola launches big oil block.

A glut of Nigerian cargoes reckoned to be near 50 cargoes was said to be weighing on the market, traders said yesterday, while state Angolan oil firm, Sonangol, trimmed its offer of Saxi crude.

Much of the glut could end up heading into the refining systems of major oil companies like Shell and Total, a trader said, meaning the excess is effectively lower than 50 cargoes. Demand for Agbami and Qua Iboe has been higher than demand for other grades so far. while Qua Iboe was being offered at about dated Brent plus $2.

About 10 April-loading Angolan cargoes remained available, steady from Tuesday’s estimate. The CLOV grade has been relatively slow to find buyers. Sonangol trimmed its offer of Saxi crude to dated Brent plus 50 cents, down 25 cents from Tuesday’s level, a trader said. The company was still offering Dalia at dated Brent minus 70 cents a barrel.
Vanguard, March 8, 2018

 

 

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