A series of tenders by major Asian refiners and freight rates at multi-year highs kept activity on the Nigerian market fairly subdued.
Supply of Nigerian crude looks set to continue rising into the end of the year. Loadings of the four largest grades of crude oil – Forcados, Qua Iboe, Bonga and Bonny Light – will rise to their highest since April this year in December.
Qua Iboe was said to be offered around $1.40 a barrel above dated Brent, down sharply from the most recent indications earlier this week of closer to $1.70 a barrel, traders said. Even though the arbitrage for moving West African cargoes to Asia, the Brent/Dubai swap, is at its most favourable since late August, freight rates have risen sharply.