LONDON: West African crude firmed versus dated Brent on Tuesday as a smaller export programme emerged for Nigerian crude in March.
The programme, along with demand from Asian tenders and firming refining margins, helped differentials to dated Brent inch back up from 5-1/2 year lows hit in recent weeks due to a global supply glut.
Nigerian crude oil exports are set to fall to around 1.76 million barrels per day in March, according to traders and provisional shipping lists, down from the roughly 1.87 million bpd originally planned for February.
But traders said competition from other crude sellers means that Asian demand alone will not clear the overhang of Nigerian cargoes that has been the hallmark of recent loading programmes. "There are going to be some barrels going into the tenders," one trader said, referencing April-delivery cargoes from India's IOC and Indonesia's Pertamina.
"But the biggest buyers these days are going to have to be in Europe."
European purchasing is also vulnerable to refining margins, which have slipped for some products due to a rebound in Brent crude prices. Angolan cargoes have sold more briskly in recent weeks, in part, traders said, because the sellers discounted their offers more aggressively.
There are around a dozen cargoes of March-loading Angolan crude available for purchase, including several that were already sold and are being reoffered.
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