Nigerian crude offered lower on overhang, Vitol offers Qua Iboe in Rotterdam

Nigerian crude was offered a touch lower on Thursday, under pressure from the persistent overhang of unsold cargoes, although this surplus could soon clear, given demand from Turkish and Asian refiners.

Vitol offered a cargo of Qua Iboe delivered into Rotterdam in early December at a premium of $3.55 a barrel to dated Brent on a CFR basis, which traders said equated to around $1.50 a barrel FOB, a few cents lower than recent indications for this grade.

Now that oil pricing agency Platts says it is considering including other crudes in its dated Brent assessment, traders said offers for WAF cargoes delivered in northwest Europe would likely become more frequent.

India imported 336,500 bpd of Nigerian crude in September, 20.7 percent more than in August, according to data from industry and shipping sources. But, highlighting the challenge to light, sweet West African crudes from U.S. oil, imports in September this year were nearly 40 percent lower than those in September last year.

Source: Reuters

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