According to a trader in the market, Nigerias March crude programme has failed to find patronage, with 25 million barrels still unsold as the April loading programme approached this week.
As of February 16, the price of crude oil (Bonny Light) stood at $32.32 per barrel, while the official naira exchange rate was N197 against the dollar, according to the Central Bank of Nigeria.
The patronage has grown thin as buyers showed little interest despite an offering of dated Brent plus $1.40 to Qua Iboe, one of the country’s oil grades, with buyers stating that values were less than $1 per barrel versus Brent.
Most buyers said the differentials would have to weaken somewhat in order to get the cargos moving, particularly with refinery maintenance coming and freight rates increasing to some destinations- Punch.
The slow movement contrasted with Angola’s March loadings, which traded quickly due in part to larger term contracts with Chinese buyers that left less oil for spot trading.
The country (Angola) is expected to export at least 1.8 million barrels per day in April, slightly more than March.