Some traders hoped a couple of Indian oil tenders could mop up oil to reduce a significant glut of Nigerian oil while European demand for West African grades remains nearly nil amid sluggish refining activity.
India’s IOC has two buy tenders running mostly seeking West African crude. One is for 2 million barrels cargoes loading July 4-13 and the other for 1 million loading Aug. 1-10 and both are set to close on Friday.
India has been a key outlet for Nigerian crude, with repeated tenders sometimes closing with no awardee only to
resurface seeking the same grades and delivery dates, as the major importer seeks to secure low prices for orphaned barrels.
A backlog of floating storage continues to hit demand, especially in Europe, where the appetite for new imports will
need to wait until the storage backlog is cleared.
Nigerian oil continues to attract almost no buyers there, as refinery activity remains muted amid poor margins and slow
demand for some oil products.