BUSINESS Europe increases demand on Nigeria’s crude grade
Nigerian cargoes for June loading sold at higher differentials than those for previous months, bolstered by improved demand from Europe.
Gasoline cracks in Europe are at around their highest since July and there are prospects for more strength as the continent moves into the summer driving season.
Nigerian grades, which are light and low in sulphur, are ideally suited to the relatively unsophisticated refineries that predominate in Europe.
Close to half of the 59 Nigerian cargoes available have found buyers, but many of these are likely to be resold by trading houses, one trader said.
Nigeria is to export about 1.8 million barrels per day of crude oil in June, compared with a planned 1.53 million bpd in May, data from trade sources showed on Wednesday.
Angolan cargoes for June loading have sold rapidly with only about 10 of 52 cargoes still available for purchase, traders said.
Qua Iboe: Twelve cargoes will load in June. Of these, three had sold in the spot market while two were purchased via tender. Cargoes traded at about dated Brent plus $3, around 50 cents higher than they traded for May loading cargoes.
Two Forcados, one Bonga and three Escravos cargoes had found buyers, while all Usan and all but one Agbami vessels were sold.
Most Forcados cargoes from April were deferred to May due to a pipeline leak that caused Shell to declare a force majeure. The June programme looks to be close to normal, but Shell said on Friday that it had still not lifted the force majeure.
Heavier grades sold quickly, with Pazflor and Dalia sold out, traders said.
Only Girassol had multiple cargoes still for sale.
Girassol: Offered at dated Brent plus $1.90, but a trader said it would sell at about 50 cents lower.