Nigerian crude weaker, supply ample
US
LONDON: Nigerian crude differentials were weaker on Tuesday, pressured by ample supplies remaining in August.
US demand for west African crude has been curbed by the government's sale of 30 million barrels from strategic reserves as part of the International Energy Agency's stock release.
Traders estimated there were 10 and 15 cargoes of unsold Nigerian crude for August available, some of which majors may decide to keep for their own refineries rather than sell at weakening numbers.
Buying tenders from Indonesia are expected to Hoover up a few of the cargoes.
Traders said the grade was last done around dated plus $1.70 and pegged it at around dated plus $1.60 to plus $1.70 on Tuesday, a shade lower than on Monday, because of ample supply.
In recent deals, Sonangol bought the Aug. 25-26 Qua cargo in order to fulfil a supply tender it won to Indian Oil Corp., traders said.
Vitol was thought to have the Aug. 22-23 Qua and there are thought to be three other cargoes of Qua remaining for August.
Remaining barrels include one or two shipments of Bonny, plus some Escravos and other grades, traders said.
ANGOLA
Most if not all sold out for August loading.
September loading programmes are expected to be released later this week or early next week.
ASIAN TENDERS
Petral, the trading unit of Indonesian state-run energy firm Pertamina, has issued a tender to buy Nigerian sweet crude for September-November delivery.
The company is seeking offers for Nigeria's Qua Iboe or Escravos in the tender which closed on Monday with bids valid until Tuesday.
Copyright Reuters, 2011
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