11 February 2019, Sweetcrude, Lagos — Prices of Nigeria’s crude grades may crash further downwards this week due to persistent power failure at the export facility, sources close to the matter told SweetcrudeReports.
Power failure which began early last week is yet to be finally laid to rest, we learnt.
The country’s crude grades prices had fallen to their lowest in three weeks due to power failure at the export facility.
Reuters’ market report had said differentials fell on Friday for a second day due to a power failure at the Qua Iboe export facility which began early last week.
Prices of Qua Iboe BFO-QUA for March loading was offered at a premium of between $1.80 and $1.90 a barrel above dated Brent, down from around $1.95 the previous day and from around $2.15 at the start of this week.
The power outage caused a slowdown, as crude was loaded at around 25,000 barrels an hour, slower than normal rates around 30,000 barrels an hour.
As a result of excesses on ground, Bonny Light and Qua Iboe, which had been listed to be sold at higher than $2 a barrel above dated Brent throughout February, was said to have crashed- just one cargo of Qua Iboe was sold last week by Vitol.
The drop in export comes after last Tuesday’s report said Nigeria’s March oil cargoes were almost sold due to high demand by European refiners for the country’s oil. However, inside sources said the power challenge is yet to be totally fixed and could cause further slowdown this week.