West Africa crude steadies as market awaits tenders outcome

West African crude oil grades steadied on Monday, with activity light as traders awaited the outcome of tenders issued by Indian refiners, Reuters reports.

Both IOC and MRPL are due to issue tenders this week, and traders said they were reluctant to do deals before the results were known.

Nigerian grades have sold relatively quickly for October loading, with only around 10-12 cargoes still available around two weeks after it emerged.

Differentials on Nigerian grades have benefitted from relatively strong demand from Europe, and from tight supply because of disruption to supply of Libyan oil, which is also light and sweet.

“Nigerian grades were the most economic grades into north west Europe for about 5-6 weeks, so stuff is moving to the region and this is beefing up diffs,” a trader said, pointing to maintenance in the North Sea which has driven up differentials.

Libya’s government is working to end protests at oil facilities that have cut exports, and its oil production has risen to nearly half its normal rate, its top oil official said on Monday.

Angolan grades by contrast were selling slower than earlier in the year, with buyers in China said to be less willing to take on new oil due to run cuts and full storage tanks.

The trader said weakness in fuel oil in Asia was also contributing to relative weakness for demand and differentials for Angolan crude oil.

Qua Iboe BFO-QUA: Offered at dated Brent plus $3.40 a barrel and valued around dated plus $3.00.

Bonny Light: Still under force majeure. Traders said they did not expect a September loading programme to emerge.