Nigerian crude overhang persists, tenders drag on West African trade


    LONDON, May 21- A large overhang of unsold Nigerian crude oil, two pipeline outages and a series of upcoming tenders kept activity in the West African market fairly muted on Monday, although trade was a little brisker for Angolan grades, traders said.

    * July loading programmes have started to emerge. The Forcados stream is expected to load seven cargoes of varying sizes, down from nine cargoes in June, meaning a drop in the daily rate to 195,000 barrels per day (bpd) from 298,000 bpd.

    * Because of a shutdown on the Trans Forcados Pipeline last week, a portion of the June programme has already been deferred to July, traders said.

    * Of the nine cargoes in the schedule, most appeared to be have been originally scheduled to load in June, two traders said.

    * Exports of Nigeria’s largest stream, Qua Iboe, will rise to nine cargoes, up from seven in June, bringing the daily rate to 276,000 bpd in July from 223,000 bpd the previous month.

    * About 20-25 cargoes of June-loading Nigerian crude were still said to be available.

    * Shipments of Bonny Light are still under force majeure, according to operator Royal Dutch Shell on Monday

    * Sonangol has just two remaining cargoes from the 43-strong June programme that are still available, traders said. Both are cargoes of Dalia and were being offered at a discount of $1.50 a barrel to dated Brent.

    * A cargo of Girassol last week was heard offered at a premium of 70 cents to the dated price.

    * The July loading programme includes at least 48 cargoes, according to a preliminary schedule released last week.

    * Indonesia’s Pertamina is running a tender to buy crude for Aug. 1-10 or 16-20 or early September delivery. The tender closes on Monday.

    * India’s HPCL is running a tender to buy 6 million barrels of crude for delivery on July 1-15 or Aug. 1-10. The tender closes on May 23.

    * Thailand’s PTT last week did not award a tender for 500,000-1 million barrels of medium sour crude for July delivery.

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    Godwin Okafor is a financial journalist, Internet Social Entrepreneur and the Founder Naija247news Media Ltd He has over 16 experiences in journalism, which cuts across traditional and digital media. He started his journalism career in Business Day, Where he was a senior editorial graphic artist, before he left to start Naija247news, An Online Financial Newspaper in 2010. He has won series of awards and he is the chairman of Emmerich Resources Limited, the publisher of and also sits on the board of Students In Business Awards, (SIBA).


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