June 13, 2017 / 4:31 PM / 2 years ago

W. Africa Crude-Qua Iboe diff plummets on light, sweet oversupply

LONDON, June 13 (Reuters) - Trade in Nigerian grades was slow on Tuesday owing to plentiful alternative light sweet grades in the Atlantic Basin.

* Exports of Nigeria’s Forcados crude were expected to be 248,000 barrels per day in July, a loading programme showed.

* Qua Iboe was under pressure and pegged at less than 50 cents a barrel above dated Brent. Earlier this year it was trading at dated Brent plus $1.20 a barrel and higher, several traders said. One said bids were barely above dated Brent flat but sales were not taking place.

* The grade briefly hit a similar trough in mid January year but otherwise the differential has not been this low since the end of 2015.

* Bonny Light was still under force majeure following the closure of one of its two pipelines, which is expected to be back up by the end of the month.

* Angolan grades for July were nearly sold out. Phillips 66 sold a cargo of Girassol to Unipec. The cargo was offered at dated Brent plus 20 cents. The final price did not surface.

TENDERS

* India’s IOC tender is due to close on Thursday.

RELATED NEWS

* OPEC said on Tuesday that a long-awaited rebalancing of the oil market was under way at a “slower pace” and reported that its own output in May jumped due to increases by nations exempt from a pact to reduce supply. (Reporting by Julia Payne; editing by David Clarke) ))

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