Nigerian Crude Oil Differentials Remain Strong On Distillate Margins

The Nigerian and West African crude oil differential prices remained strong on Friday, traders said, supported by distillate margins that have given buying interest a boost.

However, competition from rising Libyan output and U.S. oil could limit the upside for lighter Nigerian grades. Qua Iboe for September loading was offered at dated Brent plus $1.60 a barrel. Chevron, BP and Total were heard to be showing cargoes and a trader said a short loading programme was supporting the grade.

Distillate-rich Forcados was last offered at a strong premium of $1.70 above dated Brent. Indian Oil Corp. is running a tender to buy West African crude loading Sept. 20-30. The result was slow to emerge and a trader expected the refiner to take two cargoes. Another Indian refiner, BPCL, is running a tender to buy September loading cargoes. The tender closed on Aug. 4.

Source: Energy Mix