Demand for Nigerian crude flat over high prices, access to alternative grades

West African crude continued to be offered at high prices, but traders said a skyrocketing Dubai-Brent spread was undercutting Asian demand while Western buying interest remained flat.

Partial outages which affected the Forcados and Amenam streams, along with hoped-for Western demand during the summer driving season, were pushing up Nigerian differentials.

Major grade Bonny Light was being offered at around a premium of $3.00 compared to dated Brent, its highest in around six years.

Still, traders said European demand for Nigerian crude had remained relatively flat in June and July due to high prices and access to alternative grades despite some outages originating in Russia and in the North Sea.

 

Source: Reuters

 

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