Nigerian crude oil differentials held at their lowest in around five years on Tuesday, with traders saying that slack demand from Asia and weakness in competing grades meant there was little prospect of a recovery any time soon.
Traders said around six to eight cargoes for September were still available, even while most of the Nigerian programme for October-loading cargoes has emerged.
Only around two Angolan cargoes for October loading have traded in the spot market a week after becoming available, a trader said, with around 12 sold on term contracts.
A total of 55 cargoes, or 1.7 million barrels per day, are available for October loading.
A trader said the demand situation in China pointed to further pain for sellers.
“It’s a wait-and-see game … There’s not too much incentive to pay higher differentials as there will be significant run cuts (from Chinese refineries),” a trader at a major buyer said.
ANGOLA:
CLOV offered at dated Brent minus $3 per barrel.
Cabinda: Offered at dated Brent minus $1.70, but traders said that transactions would probably be struck at levels below minus $2 per barrel.
NIGERIA
Qua Iboe was valued at around dated Brent plus 90 cents a barrel.
Offers for October cargoes were scarce so far. Qua Iboe will load 12 cargoes, a trader said, the same as in September, which amounts to a lower daily loading rate due to the greater number of days in October.
