Lagos — Demand for Nigeria’s crude in Asia is beginning to pick up again, according to market reports gathered by SweetcrudeReports.
The market schedule says Asian demand is rebounding, putting to rest worries about signs of an economic slowdown and competition from U.S. shale oil.
An earlier report by Reuters had said U.S shale producers have cut down spending, affecting the country’s projects such as laying export pipelines.
This means production and exports in the U.S will shrink, giving room for West African crude grades to thrive.
Nigeria’s May Bonny Light cargoes are being offered at a little below $2, while Qua Iboe is offered at a little above $2 compared to dated Brent.
Low prices have caused buyers to lick up cheaper April cargoes, for which display for Qua Iboe is nearly 50 cents less than for May, reducing the glut.
According to traders, April cargoes have dropped from around last week’s 30 to below 20.
Exxon also sold some April-loading Qua Iboe, offered at dated Brent plus $1.70 to $1.80 a barrel.
SweetcrudeReports had on Tuesday, reported that Nigeria’s crude grades may rise above $2 per barrel above dated Brent in May.
Exxon Mobil already offered May’s cargoes of Qua Iboe at dated plus $2.20.