Nigeria Supply Disruptions Provide Floor

Published on Wednesday, 05 Jun 12:46 pm

Nigerian crude differentials took a break after falling sharply from a 20-month high in early May, as supply disruptions affecting three key grades helped offset lacklustre demand. The three grades under force majeure - Bonny Light, Brass River and Usan - collectively account for around 400,000 b/d or about a fifth of Nigeria's oil exports. Traders said at least a third of the 64 Nigerian cargoes originally available for loading in July were still available as some Asian buyers opted instead for grades from other regions. Offers on the key Qua Iboe grade have held at between dated Brent plus $2 and $2.50 since late last week. More than half of the planned 13 cargoes of Qua Iboe are still available. "There's still a lot left. Sales are very slow," said a West African crude oil trader (Reuters).

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