LONDON: West African crude differentials were supported on Tuesday by production outages and demand for medium and heavy crudes in the United States, traders said.
While sellers of some grades have raised their offers, there was no evidence of a rise in traded values.
The wildfires in Canada's oil sands region have hit production, supporting US crude prices and making arbitrage to the United States more viable, say traders.
NIGERIA
Qua Iboe was last offered at dated Brent plus $1.60, a trader said, higher than the last Reuters assessment of about dated plus $1.05. There are said to be a number of unsold cargoes for June loading.
Forcados crude exports remain under force majeure and this plus other outages have pushed Nigerian output to the lowest since at least 2007, according to Reuters estimates and International Energy Agency data.
ANGOLA Some grades were being offered at higher levels, traders said. Dalia was offered at dated Brent minus $3.00 and Kissanje at dated minus $1.00.
There are about 10 June-loading cargoes left, according to estimates from traders.
Demand for medium and heavy crudes in the US Gulf is likely to absorb some, supporting the market.
TENDERS Indian Oil Corp. is running a tender for crude loading in late July loading, traders said.
Last week, the refiner bought six million barrels of oil in two tenders for West African crude.
Comments
Comments are closed for this article.