Glut: Unsold Nigerian crude cargoes liter market

Alarge overhang of unsold Nigerian crude oil has kept activity in the country’s crude sales market fairly quiet.

Oversupply has continued to weigh on Nigerian crude grades with little fresh trading just as the price of crude jumped 1.5 percent to above $80 a barrel yesterday, supported by concerns that falling Venezuelan crude output and a potential drop in Iranian exports could further tighten global supply.

Nigerian grades continued to struggle at the beginning of the week weighed down by a surplus of unsold June-loading cargoes as the July programmes emerged, according to Reuters report citing trade sources.

According to the report, some 20 cargoes remained from the June loading programme, out of a total of 60 and down from closer to 30 a week ago.

July programmes are starting to emerge, with Qua Iboe, Forcados and Bonga along with a few smaller grades, traders said, adding that this constituted “huge volume” for the market to digest.

Exports of Bonny Light, one of Nigeria’s premium crude grades are still halted following Shell declared force majeure late last week following a leak on the Nembe Creek trunk line.

A separate shutdown of the Trans Forcados Pipeline since last week has forced a number of June-loading cargoes of this grade to be delayed to July.