BUSI­NESS Europe in­creases de­mand on Nigeria’s crude grade

Daily Trust - - NEWS -

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.

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