LONDON: Nigerian crude differentials looked to be weakening on Wednesday, pressured by ample competing supplies and the prospect of higher Nigerian exports.
Traders in the Angolan market remained focused on term allocations for December cargoes.
NIGERIA
Forcados was offered at dated Brent plus $1.70, down 20 cents from an offer reported on Tuesday.
Higher US crude exports are weighing on Nigerian crude in general, one trader said, as are signs of higher Nigerian output.
Bonny Light exports look set to rise after repairs were completed to Nigeria’s Nembe Creek Trunk Line. But force majeure on exports remained in place, a Shell spokeman said on Wednesday, while a trader said that a loading programme has yet to be issued.
The first loading programme to appear for December has scheduled higher output of Qua Iboe, Nigeria’s largest crude stream.
ANGOLA
State oil company Sonangol has yet to show spot offers for December because it is still busy with term allocations.
One trade source expected Sonangol to allocate 13-15 cargoes to term buyers.
Exports are set to rise in December to 49 cargoes from a 13-month low of 47 cargoes in November, a preliminary programme showed on Monday. The total could end up closer to 51, one trader said.
There are up to 10 November cargoes left.
Source: Brecorder.com
