Nigeria’s crude hit by oversupply

Nigerian crude differentials remained under downward pressure yesterday from ample supplies.

According to Reuters, a number of pending Asian buying tenders was keeping a lid on activity in the Nigerian market, traders said.

Supply is plentiful as a number of cargoes are still available for June loading in addition to July volumes. Much of the July programme for Qua Iboe – often one of the first grades to be sold out – is still available, a trader told Reuters.

Differentials for most grades were struggling, a trader said. The return of a normal export programme of Forcados in June – scheduled at seven cargoes – has added downward pressure on the market.

However, offer levels for Angolan cargoes were steady. About 12-13 cargoes for July loading were still available, a trader said, steady from Monday’s estimate.

Angola’s national oil firm, Sonangol, was heard to be still offering a Dalia cargo (Angolan crude grade) loading on July 29-30 at dated Brent minus $1.10, versus sold prices one trader said are closer to dated minus $1.50.

Girassol was heard to be on offer at dated Brent plus 30 cents, a level one trader thought was ambitious.

Indonesia’s Pertamina is running a tender to buy August-loading crude, which closes on today.

The result of Indian Oil Corporation’s latest tender that could take West African crude is expected today.  Another Indian refiner, MRPL, is looking to buy a cargo of sweet crude loading on July 6-20. This tender closes next week, a trader said.

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