Nigerian excess crude under pressure on Forcados exports return
Nigerian crude differentials were under pressure on Thursday at the close of trade in London from the prospect of more plentiful supplies due to the return of Forcados exports.
An estimated 15 June-loading cargoes are reported to be available, in addition to more July-loading barrel.
The country’s Qua Iboe blend was last heard to be offered at dated Brent plus $1.00 although a trader put value closer to dated Brent plus 50-70 cents.
The Forcados stream has loaded three cargoes in May according to shipping schedules after being shut down for months, adding to supplies.
On the other hand, Angolan trading remains slow due to weaker Asian demand, although state oil firm Sonangol was heard to have sold the Hungo cargo it had been offering.
About 20 cargoes of July-loading crude were available, traders said, a relatively large number for this stage in the monthly trading cycle. China, a key buyer of Angolan oil, has shown little demand so far, although traders say arbitrage is workable to the United States.
Deals are still being done. Sonangol was heard to have sold its Hungo cargo that it was offering at dated Brent minus 40 cents to Unipec, and was said to still be offering a Dalia cargo at dated Brent minus $1.10 and Saturno at a 90 cent discount.
The result of Indian refiner BPCL’s tender to buy crude for loading July 1-10 did not immediately emerge on Thursday. A trader said he expected the company to buy a Nigerian cargo
By Business a.m. live staff