By Sundiata Post (with Agency report)
Offer levels were falling for several Nigerian crude oil grades, with Qua Iboe now available from different sellers at premiums of as low as 75 cents to dated Brent.
This is coming at a time several additional Angolan cargoes traded, leaving less than a handful to sell.
Nigerian differentials came under yet more pressure due to thin buying interest on the back of uncertain loadings. One buyer said they had received no fewer than six offers of Qua Iboe, underscoring the excess. Nearly every grade was still on offer, with a total of some 30 February-loading cargoes. Exxon was said to have sold a cargo of Erha crude, though the buyer and the premium were unclear. Shell had recently offered Bonny Light at a premium of $1.10 per barrel to Brent, but buyers said the price would have to be far lower. Shell and Litasco were also offering Bonga at premiums of around $1.40 per barrel.
However, Sonangol and BP had sold cargoes of Angolan oil, whittling the February loading cargoes available to three or four, traders said. BP had sold a cargo of Dalia to Unipec and also sold a cargo of Kissanje, though the buyer was not clear Sonangol also sold a cargo of Palanco to Unipec, which has purchased several Angolan and other medium and heavy grades in recent weeks.
Reports that Saudi Arabia cut February exports to some Asian buyers buoyed oil prices, and also helped spur demand for other medium and heavy crude oil cargoes, including those from Angola.
This is coming at a time several additional Angolan cargoes traded, leaving less than a handful to sell.
Nigerian differentials came under yet more pressure due to thin buying interest on the back of uncertain loadings. One buyer said they had received no fewer than six offers of Qua Iboe, underscoring the excess. Nearly every grade was still on offer, with a total of some 30 February-loading cargoes. Exxon was said to have sold a cargo of Erha crude, though the buyer and the premium were unclear. Shell had recently offered Bonny Light at a premium of $1.10 per barrel to Brent, but buyers said the price would have to be far lower. Shell and Litasco were also offering Bonga at premiums of around $1.40 per barrel.
However, Sonangol and BP had sold cargoes of Angolan oil, whittling the February loading cargoes available to three or four, traders said. BP had sold a cargo of Dalia to Unipec and also sold a cargo of Kissanje, though the buyer was not clear Sonangol also sold a cargo of Palanco to Unipec, which has purchased several Angolan and other medium and heavy grades in recent weeks.
Reports that Saudi Arabia cut February exports to some Asian buyers buoyed oil prices, and also helped spur demand for other medium and heavy crude oil cargoes, including those from Angola.
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