A sharp improvement to European gasoline cracks could soon lead to an uptick in demand for Nigerian crude, traders said, but differentials remained steady on high storage and mostly bad margins.
* Increased mobility helped send European gasoline cracks higher and provided a boost to sellers of Nigerian oil.
* Still, sold prices for lighter Nigerian crude grades Qua Iboe and Bonny Light have yet to exceed around dated Brent plus a dollar in recent days, as European gasoline stocks have slipped but remain near all-time highs.
* Raised official selling prices by about $1.30 for these grades in July compared to June are realistic, according to one trader, though the destocking in Europe may take a while before new demand can kick in.
* A tender from Taiwan’s CPC for sweet crude was likely awarded to a shipment of WTI Midland oil and not West African, but traders awaited results for Thai oil refiner IRPC which also issued a tender for sweet crude valid until Wednesday.