Barely 10 days to the time another crude will be exported for January, 2016, reports says there is no buyer yet for 50 million barrels of Nigerian oil for November and December export.
In spite this development, some traders said strong refining margins for gasoline and a slight retreat in freight rates helped prevent further weakness in Nigerian crude oil differentials.
Sweet crude reports that this large surplus of oil has helped to push the differential of benchmark Qua Iboe oil to its lowest since January, and near a multi-year low reached in December.
The medium quoted a trader who claimed strong gasoline margins are offering a element of support for light sweet Nigerian oil and may help prevent further weakness.
”Runs are up and freight rates are slightly lower, so there’s no crisis (in differentials),” the trader said.
Compared to $5.40, the price obtainable in mid October, Eurobob’s crack was at around $13 per barrel.
Pending when the market shows sign of recovery, a trader reaveled that refiners are looking to reduce crude inventories in the run up to year-end accounting, limiting their appetite to make purchases.
But traders said that while some cargoes for more prompt delivery would go at these levels, others for later dates would be closer to a 50 cent premium.
Qua Iboe was quoted on Platts at parity to dated Brent while Bonny Light was said to be trading in line with Qua Iboe.
According to a trader, a late October loading Escravos owned by Total is floating and may likely go into the French major’s refining system.
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