Ten crude oil cargoes from Nigeria for the February- loading are still looking for buyers, New Telegraph gathered. It was learnt that buyers’ apathy and loading delays have continued at the weekend. A February loading schedule revealed that the country’s March exports have already humped to 62 cargoes despite the apathy.
“There were about 10 February-loading crude oil cargoes still looking for buyers,” a schedule has shown. The schedule revealed that there was “a smaller overhang in the monthly trading cycle than in previous months.”
Qua Iboe crude was, according to the schedule, offered by Exxon at a premium to dated Brent of $1.50 a barrel, steady to higher than offers heard. The value was pegged closer to date plus 80 cents. “Nigeria’s March exports, already at 62 cargoes, were on track to show an increase from February before the release of several loading programmes,” it further read.
Traders confirmed this schedule, adding that loading delays continued on a number of Nigerian crude grades including Bonny Light, Qua Iboe, Brass River and Forcados. Despite this, the Nigerian crude oil differentials were considered firmer, supported by more robust demand for cargoes loading in February, than in previous months. An arbitrage to the United States and strong gasoline cracks has been supporting Nigerian differentials.
But some traders say the arbitrage is now less workable and margins narrower, limiting the potential for further gains. “Offers are higher, but I’m not sure how much is going through at these levels,” a trader said, referring to the Nigerian crude market.
While Nigeria’s crude is battling bearish sale, Angolan cargoes have, according to the schedule, also sold relatively well for March, loading at higher differentials than seen for February cargoes. March cargoes have traded quickly.
About 20 have gone to term buyers and about 15 sold on the spot market, meaning the majority of the 57 cargoes have been sold. “Offers of remaining cargoes are on the increase. Sonangol was offering Dalia at dated Brent minus $3.80, up 10 cents from its offer of another cargo which a trader said was sold to MRPL.
“Girassol was valued at about dated minus 60 cents and offered at a 30 to 40 cent discount versus dated Brent, up from the differentials Februaryloading cargoes sold at. “The result of a buying tender from Taiwan’s CPC was expected on Wednesday but has yet to emerge, a trader said. The result of Indian refiner BPCL’s tender was also slow to emerge.”
