Global demand for Nigerian crude cargoes picks up as sellers cut prices

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    LONDON, Aug 7 – Demand for Nigerian crude cargoes has picked up this week, after weeks of sluggish trading, but sellers have been forced to cut their prices in order to get barrels moving, as an overhang persists and physical markets elsewhere are also showing weakness, traders said.

    * A number of Nigerian grades have struggled to find buyers, as holders of physical cargoes have been reluctant to risk putting additional pressure on a market that has already had to absorb an overhang of August-loading cargoes as trading in September crude gets underway.

    * But a number of cargoes have changed hands at much lower prices, echoing weakness elsewhere in the Atlantic Basin.

    * August-loading Forcados was heard to be offered at a premium of $1.55-1.65 to dated Brent, while September barrels were quoted at $1.65-1.75, traders said.

    * Bonny Light was quoted at $1.45-1.55 above dated Brent for August delivery and at $1.65-1.75 for September, while Qua Iboe was quoted at $1.60-1.70.

    * All three grades were recently quoted closer to $1.60-1.80 a barrel in the last few days.

    * Shell was said to have sold a cargo of Qua for delivery into South Africa’s Saldanha Bay, although the level at which the cargo moved was not clear, two traders said.

    * Chevron was said to have sold a cargo of Nemba at a discount of 10 cents to dated Brent, down from earlier indications at 20-30 cents above the dated price. The refiner was also said to be offering cargoes of Agbami crude.

    * Less than a dozen cargoes of Angolan crude were said to be still available from the September loading programme, traders said.
    TENDERS

    * The results for Uruguay’s Ancap crude tender are due out later on Tuesday, traders said.

    * Indonesian refiner Pertamina is seeking to purchase three 950,000-barrel cargoes and one 600,000-barrel cargo of light, sweet crude for delivery between November and December.

    * Results for Indonesian refiner Pertamina’s tender began to emerge with Eni set to deliver a cargo of Olombendo. Pertamina also took some other west African crude grades.
    RELATED NEWS

    * Sri Lanka’s Ceylon Petroleum Corp is seeking to buy 700,000 barrels of an alternative crude to its usual purchases of light, sour Murban for delivery in late October. The tender closes Aug 14.

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    Godwin Okafor is a Financial Journalist, Internet Social Entrepreneur and Founder of Naija247news Media Limited. He has over 16 years experience in financial journalism. His experience cuts across traditional and digital media. He started his journalism career at Business Day, Nigeria and founded Naija247news Media in 2010. Godwin holds a Bachelors degree in Industrial Relations and Personnel Management from the Lagos State University, Ojo, Lagos. He is an alumni of Lagos Business School and a Fellow of the University of Pennsylvania (Wharton Seminar for Business Journalists). Over the years, he has won a number of journalism awards. Godwin is the chairman of Emmerich Resources Limited, the publisher of Naija247news.

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