Nigerian crude sales pick up but differentials low

An overhang of Nigerian crude oil for November loading began to ease on Thursday, traders said, but differentials were low, with high supply of oil and slack demand.

A fall in futures prices and a strong recovery in gasoline refining margins have helped shore up demand for light sweet Nigerian crude oil, but slow sales up until now have kept differentials low.

High freight costs and a high premium of Brent to Dubai DUB-EFS-1M have made West African oil less competitive for Asian buyers.

Providing some support, there was lower supply from competing Libyan oil after the country’s Nafoura and Al-Majid oil fields, with a combined production of around 29,000 barrels per day, closed following the Zueitina oil port being shut down, an energy official said on Thursday.

Around 15 cargoes of Nigerian crude for November-loading are still available for purchase, traders said, a high number for this point in the trading cycle.

There were also nearly 50 million barrels for sale for December loading, traders said.

Qua Iboe was being offered at dated Brent plus $1. A trader said a cargo for prompt delivery sold for around dated Brent plus 50 cents.