Nigerian crude differentials holding up on demand

Nigerian crude oil for October loading began to clear out as traders awaited the programme for November, with differentials seen supported by the steady demand.

Differentials are holding up better than those for Angolan oil thanks to demand from European refiners and some buying from the United States, which has picked up due to a lower premium of Brent to U.S. crude.

A lower Brent premium to U.S. crude makes African crude more affordable to U.S. buyers as it is benchmarked against the North Sea benchmark.

There were about nine cargoes of Angolan oil allocated to term buyers, according to traders.

This is less than in recent months when around 12 have been allocated.

The lower allocations will offset the supportive impact of a slightly smaller loading programme for Angola in November than in October.

Qua Iboe was valued at around dated Brent plus $1.20, little changed on the week.

There were around 10 cargoes of Nigerian crude for October loading still available, one trader estimated.

IOC bought a cargo of Bonny and Pazflor from Shell and a cargo of Agbami and another unknown cargo from Shell via a tender on Thursday, a trader said.