Nigerian crude differentials rise broadly but demand still uncertain

Prices for Nigerian crude oil continued their steady climb in recent days on hopes of recovery in global fuel consumption but lacklustre European refining margins and steady differentials elsewhere added some uncertainty.

Nigerian Bonny Light and Qua Iboe continued to be offered for around dated Brent plus $2 a barrel, though traders
expressed scepticism whether demand for light sweet crude had recovered enough to justify the prices.

A sharp rise in U.S. gasoline inventories, closures to many refineries and only impartial easing to lockdowns in some
regions clouded the outlook for gasoline.

Traders pointed to steady and even slightly decreasing offers for competing Mediterranean oil grades as a sign that physical oil may not soon recover to pre-virus prices.

Chinese buying appetite was nearly recovered as the economy there reopens more quickly but travel restrictions meant
jet fuel was in less demand, weighing on interest for heavier crude oil grades which have yet to recover.

 

Source: Reuters

Share

SUBSCRIBE TO LATEST ENERGY NEWS

Read the latest energy industry news and researched articles
for oil and gas, power generation, renewable energy, events and more...