Nigeria crude offerd at high price on margins

Relatively healthy refining
margins for lighter products
held offer prices on Nigerian
light crude at the highest level
in more than two years, while
dealing was thin on Thursday
ahead of the release of Asian
import tender results.
“Light barrels are very strong.
In the short term, at least,
refiners have good margins,”
a trader said. “Without Libyan
crude, sweet is too tight.”
But other traders said there
has been some slowdown in
demand from the United
States.
One trader pointed to larger
increases in crude stocks in
the U.S. Midwest and Gulf
Coast, known as PAD II and
PAD III, than in other areas
last week.
“Look at the builds in PADD II
and III. Watch for the next
two weeks too,” another
trader said. “Premiums cannot
hold at current levels.”
Qua Iboe was offered at
premiums of about $4.60/
$4.70 a barrel to dated BFOE.
No cargoes were yet reported
sold at that level, which is the
highest since July 2008. BFO-
QUA Traders said Tunisia was
looking for end-October
Bonny Light. However cargoes
were not available due to the
force majeure throughout
October. Price levels before
the force majeure were dated
plus $3.50/$3.60.
All the Akpo cargoes for
October were sold around the
dated plus $2.10-$2.40 range.
Petrobras might have bought
all the cargoes, some traders
said.
Roughly 25 cargoes of
October loading Nigerian
were still available.
BP was offering Agbami into
Asia, but details did not
emerge.
Traders awaited the result of
Vietnam’s tender to buy
October crude. It was looking
to buy sweet crude from West
Africa or Asia Pacific. The
result was expected to be
released on Friday.
The result of the import
tender by Indian Oil Corp (IOC)
was expected to emerge on
Friday. However, this was not
seen as bullish to the prompt
market as the company was
looking to buy November
loading barrels.
Home News Columnists
Sports Politics Business
Editorial Arts Health
Education Society Saturday
Magazine Sunday Magazine
News Update
Search