IEA see oil demand rise in developing economies as Nigerian Erha programme emerges, trade slow

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The International Energy Agency (IEA) does not expect oil demand to peak any time soon due to rising consumption in developing economies, Director Fatih Birol said on Monday. Efforts to stem the world’s surplus of crude oil have turned typically lower-quality crude into the most sought after barrels – quickly clearing out loading programmes from Angola. Nigeria’s Trans Forcados Pipeline, which has been shut for most of the last year, could reopen “towards the end of the second quarter”, Seplat’s chief executive said. Some 9 million barrels of North Sea crude are currently being stored on ships off the British and Danish coasts, compared with around 5 million barrels a week ago, according to Reuters shipping data. Around 6-8 cargoes were left from the March export plan.

* Grades including Nemba, Pazflor, Plutonio and Saturno remained, some of which had already traded but been reoffered.

* The preference for medium and heavy crudes was still favouring Angolan, as was the comparative reliability of its exports.

NIGERIA

* Qua Iboe exports were subject to delays of roughly four days, and Exxon (NYSE:XOM) had stopped offering the remaining March-loading cargoes, traders said.

* Two cargoes of March-loading Escravos traded, including Chevron’s 6-7 loading cargo and Vitol’s 1-2 loading cargo.

* Traders said BP (LON:BP) bought from Chevron (NYSE:CVX), but this was not confirmed and the buyer of Vitol’s cargo was not clear.

* The February programme had mostly cleared, with much of it ending up in Indian tenders, but a few cargoes remained available.

* A Vitol cargo of Erha that loaded in January had still not sold, traders said, though it was currently landing in northwest Europe. The company offered it in the trading window Friday afternoon delivery to Europe Feb. 1-10 at a $1.85 per barrel premium to dated Brent.

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