Angolan cargoes loading in September have found limited buying interest, traders said on Wednesaday, while Nigerian crude differentials remained close to multi-year lows.
Ample supply and sluggish demand have weighed on the market, leading to speculation that unsold crude could be held in floating storage, although there is no evidence of this happening yet.
Roughly 20 of Nigeria’s 65 cargoes in August remained available and high offer levels for Angola’s September cargoes have so far put a dampener on spot sales, say traders.
“The Angolan offers are in some cases dollars above the last trades,” said one trader, commenting on why there’s been limited demand so far.
An increase in supply from Libya has also had a bearish impact on the Nigerian market.
NIGERIA
Qua Iboe was valued at less than dated plus $1.00 by one trader but above dated plus $1.00 by another. Cargoes were assessed at dated plus 70 cents on Monday, the lowest since 2009 based on Reuters data.
September loading programmes out so far point to 52 cargoes, or 1.61 million barrels per day, of Nigerian crude.
Some programmes, including the Brass River schedule, are not yet available.
ANGOLA
BP offered a Saturno cargo loading in August at dated minus $5.50, without finding a buyer, a trader said.
Offers of September-loading cargoes from Sonangol are as follows:
– CLOV: -$2.50
– Dalia: -$3.00
– Girassol: -$0.20
– Hungo: -$2.50
– Kissanje: -$1.20
– Nemba: -$1.50
– Plutonio: -$1.50
– Saturno: -$5.50
– Saxi: -$0.70
