Nigerian crude offered at highest since mid-2014

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The Nigerian crude oil market remained strong on Wednesday, with sellers feeling confident enough to offer two of the country’s grades, Bonny Light and Qua Iboe, around their highest in over four years.

Shortages of Libyan and Algerian crudes and a smaller export programme for CPC, as well as a strong demand from refiners in both Europe and Asia for distillate-rich grades have pushed up differentials for a number of key crudes to multi-month, or in the case of Nigeria, multi-year highs, Reuters reported.

Bonny Light and Qua Iboe were offered for as high as $2.50 a barrel above dated Brent, although two traders said buyers were reluctant to step in at the levels, which were the strongest for the two grades since June 2014, according to Refinitiv Eikon data.

Nonetheless, Repsol was said to have loaded a cargo of Qua Iboe bound for their refinery in Peru. The Spanish group previously took Amenam to the 117,000-barrel per day La Pampilla refinery.

Less than half of the Angolan March loading programme was said to be available for sale on the spot market following the term allocations by state company Sonangol to regular customers.

Petroperu has issued a tender to buy 760,000 barrels of either a Latin American, United States or West African crude for March loading.

Thailand’s PTT closed a buy tender for sour crude for loading between March 20 and April 10 on Tuesday but results did not emerge immediately.

Taiwanese refiner, CPC, has issued a tender to buy an unspecified amount of light sweet crude that closes on Thursday. The company has taken an increasing amount of US shale rather than West African crude over the last year.

An Indian refiner, Hindustan Petroleum Corporation Limited, is running a buy tender that could draw in West African crude. The tender closes next week.

Indian Oil Corporation Limited issued a buy tender for crude loading March 12-21. The tender closes on January 25.


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