SAD! Buyers Shun Nigeria’s Crude
It is not yet Uhuru for Nigeria’s energy business, despite increased production output and rise in oil prices.
On Monday, more than two dozens of Nigerian crude oil cargoes were left unsold amid a supply glut of light sweet crude in the market.
Reuters reported that tenders to buy oil from companies in India and Indonesia helped to absorb some excess, but there were roughly 30 unsold Nigerian cargoes.
While Qua Iboe, Nigeria’s largest export grade, was offered at dated Brent plus $1.30, buyers said traded levels were likely to be lower because of an overall excess of light sweet oil.
There were also at least five cargoes of Forcados left, though several were partial cargoes.
Bonny Light, which had struggled with loading delays owing to pipeline issues, was offered at a premium of closer to $1 a barrel above dated Brent.
There were several cargoes of Agbami and Bonga left.
Meanwhile, US crude oil is flooding into Asia and may continue to do so as the arbitrage window that was initially created by Hurricane Harvey remains open.
This comes as the disruption from the costliest storm to hit the Gulf of Mexico has faded, a columnist for Reuters, Clyde Russell, wrote on Monday.
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