India provided one of the few outlets for Nigerian oil as East Asian tenders were awarded to crude from elsewhere and a glut builds up.
Tenders for sweet crude oil by Thailand’s IRPC and Taiwan’s CPC were not awarded to any West African grades, with
the latter taking U.S. oil instead.
Indian oil firms took in about 5-6 million barrels of Nigerian crude last week and 2 million so far this week, a trader said, with India’s IOC awarding a tender to Total for Akpo crude and possibly one other cargo.
There remain around 50 unsold cargoes of Nigerian crude seeking buyers, with European demand largely non-existent. Contango in the global oil market has narrowed recently amid signs India and China are tapping vast amounts of floating
storage collecting since demand dried up amid the coronavirus pandemic.
Oil majors and trading houses have been offering Middle Eastern and West African oil stored at sea as spot prices
strengthened in Asia, trade sources said.