*Sour grade, heavy Angolan grade taking over market
Loading data at ports have shown that due to an overhang of Nigerian crude at ports, International Oil Companies, (IOCs), have resorted to selling the country’s crude oil at cheaper prices.
According to shipping data made available to Sweetcrude Reports, showed that an Indian tender had to take in some of Nigeria’s excess crude on Friday.
We were told that major oil companies took some of Nigeria’s unsold crude oil into their refining system, while Angolan cargoes loading for August, were reported to have been sold out.
As at Thursday, 40 cargoes of Nigeria’s crude oil booked for August loading was said to have proven hard to get buyers.
Oil trading sources close to the port, told this Newspaper on Thursday, that Nigeria’s 2 million barrels were hanging at the ports, as buyers now prefer Angola’s crude.
Sources said Angola’s crude was quickly bought, thanks to the Chinese.
We gathered that since Nigeria’s production had increased, there is excess crude oil supply for August loading.
Nigeria’s crude oil exports quickly sprang to a high after unrest in the Niger Delta which had shut-in some of its exports.
Our source said Chevron as at Friday, puts up Nigeria’s crude from Agbami loading for Aug. 26-27 at dated Brent minus 30 cents a barrel.
On its side, Reuters said Vitol was showing cargoes of Bonny Light and Forcados.
Shell is also retaining a large volume of Nigerian cargoes for its own refining system after failing to find buyers due to a global oversupply of light, sweet crude. The grades being kept by shell include Forcados, Bonga, Bonny Light and Akpo condensate, some of which is heading to the United States.
ExxonMobil was reported to have offered Nigerian Qua Iboe at around dated Brent plus 85 cents a barrel but deal levels were still pegged at below dated Brent plus 50 cents a barrel owing to weaker Chinese demand and an oversupply of light sweet crude, according to Reuters.
Sources also hinted that August loading for Angolan cargoes was nearly sold out.
Reuters had earlier reported that refiner Indian Oil Corp awarded part of its tender to Chevron with a cargo of Agbami loading Aug. 30-31 and it is also taking a VLCC from Total but grade details were not disclosed.
Chevron also tendered to buy U.S. sour crude to fill a gap left by OPEC production cuts. India is also taking more sour Russian crude.
The market reports that shortage of sour crude has led to buying of North Sea sour grades as well as heavy Angolan crude.
Also in the first 20 days of Norwegian Grane August programme, the sour grade was also said to have sold out.