West Africa Crude-Nigerian diffs robust on rare Asian demand

Reuters September 12, 2019

LONDON: The outlook for Nigerian oil has brightened as interest from Asian refiners has risen on favourable margins and new marine fuel rules.

* Nigerian oil seldom flows as far as East Asia but is receiving a boost as buyers seek alternatives to heavier oils from the Middle East and elsewhere in West Africa.

* For some refineries, traders said, certain types of Nigerian oil are now sought for refining into low-sulphur fuel oil.

* More light sweet oil than usual has also been exported to East Asia as Chinese gasoline exports surge.

* Barrels from the relatively new Egina offshore field were being offered around an all-time high of $5 above dated Brent.

* Heavy and sweet, Egina has performed increasingly well as IMO 2020 shipping rules loom.

* Nigerian Bonny Light was still being offered at a nearly $3 premium compared with dated Brent – relatively high considering especially steep competition from US and North Sea grades this month.

* Similar Angolan and Congolese grades are being marked down to find buyers, with remaining barrels discounted about 10-20 cents daily.

* Between 5 and 10 cargoes of Angolan oil remain available for export in October, as November programmes are expected early next week.

 

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