…Traders cite high gasoline yields as reason
30 March 2016, Sweetcrude, Abuja – Nigeria’s Brass River and Qua Iboe crude grades are getting increased demand in Europe and US markets due to their high gasoline yields, according to reports.
The Brass River crude premium to Dated Brent recently jumped to its highest in almost a year as a result of this development.
The two Nigerian grades enjoyed strong demand this month from trading houses for selling into tenders or on expectations of improving gasoline cracks.
Pointing to the US East Coast, traders said resurgent demand for the Nigerian crude grades in recent months had largely been helped by their high gasoline yields.
Weekly US imports of Nigerian crude recently rose to their highest level in almost three years, according to data from the US Energy Information Administration.
Specifically, US refiners increased their appetite for light, sweet crudes in recent months and as domestic grades have ebbed close to the US East Coast on sliding margins and higher rail costs.
The US imported 559,000 barrels per day, b/d, of Nigerian crude in the week ending March 18, the largest weekly amount seen since the week ending April 26, 2013, when the US imported 698,000 b/d of Nigerian crude, EIA data showed.