Spot activity was slim on Tuesday but an Indian refiner took a greater than usual volume in its latest buy tender, helping to mop up excess Nigerian crude in the increasingly competitive Altantic Basin.
Around five cargoes were still said to be available from the September loading programme, while the October programme is expected to emerge on August 15.
Over 30 cargoes of Nigerian crude were still available for September loading, weighing on differentials. The has been selling slower than usual as United States (U.S.) exports of similar specification crude ramp up further. In a sign of even more competition to come, a major new U.S. pipeline has just started deliveries.
Traders said India’s International Oil company (IOC) took around 5million barrels of West African crude with Agbami from Chevron, Agabmi and Girassol from Glencore and the remainder from Vitol.
Traders added that the volume was unusually high for the short time period. IOC has issued two tenders for October 9-18 and 18-27 loading.
Source: The Nation