Nigerian crude prices rise after BP purchased October cargoes

The tanker Maria sails out of the Port of Corpus Christi after discharging crude oil at the Citgo refinery in Corpus Christi, Texas, U.S., on Thursday, Jan. 7, 2016. Crude oil slid Thursday to the lowest level since December 2003 as turbulence in China, the worlds biggest energy consumer, prompted concerns about the strength of demand. Photographer: Eddie Seal/Bloomberg via Getty Images

Lagos Nigeria, Sept 11 – Nigerian crude prices rose on Tuesday after refiner BP bought more October-loading cargoes in the daily trading window and bid for a number of different grades.

* BP bought two more cargoes of October-loading crude from Vitol. The company bought one cargo of mid-October loading Bonny Light at $1,55 a barrel above dated Brent and a late October/early November-loading cargo of Qua Iboe at $1.75 above the dated price, three traders said.

* BP was also said to have bid for the four largest grades, Bonny Light, Qua Iboe, Forcados and Bonga, as high as $1.75 a barrel, from closer to $1.65 on Monday.

* BP built up a fairly sizeable position in October-loading cargoes of the four grades, which are linked to the swaps market, in the last week or so.

* Traders at two refiners said this had tightened availability to the point where sellers were loath to cut their prices, even though half the October loading programme is still up for sale, with just days to go before the release of the November schedules.

* Fewer than a dozen cargoes of October loading crude are still unsold. ENI and Unipec were still said to be offering Olombendo, with the latter also said to be offering cargoes for delivery in China.

* Among the crude still available are one or two cargoes of Gindungo held by Total.

* Indian Oil Corp is running a tender to buy West African or U.S. crude for loading on Nov. 5-15. The tender closes on Tuesday and the result is likely to emerge on Wednesday.

* Indonesia’s Pertamina recently bought two 950,000-barrel cargoes of Bonny Light from Shell and Chevron for October arrival. (Reporting by Amanda Cooper; Editing by David Evans) ))

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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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