W. Africa Crude-Nigerian grades weaken on sweet grade oversupply

Tue May 16, 2017 3:37pm GMT
 

LONDON May 16 (Reuters) - Buying interest for light sweet Nigerian grades was limited on Tuesday and traders said differentials were falling with the glut of alternative crude grades in the Atlantic basin.

* Asian demand was lacklustre and European refiners were taking more U.S. crude at the moment. Further weighing on prices is the contango structure in oil futures that has been tightening since early May, making floating storage uneconomical. LCOc1-LCOc2

* Production of Angola's Saturno grade is restarting following repairs at the producing platform last week. BP did not comment.

* Nigerian workers from an oil labour union have extended a strike to oil majors Chevron, Shell and Eni subsidiary Agip in protest over the sacking of members from ExxonMobil, the union's general secretary said on Tuesday.

NIGERIA

* The award of Nigeria's Direct Sale Direct Purchase agreements, or crude-for-product swaps, has still not taken place. The contract is supposed to start in July.

* No allocations have yet been made for Forcados. The first test cargo following repairs was still at the terminal, ship tracking showed. Vitol already offered a cargo of the grade on Friday loading in late June.   Continued...

 
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