Nigerian and West African crude oil differential prices remained strong on Friday, traders said, supported by distillate margins that have given buying interest a boost, Reuters reports.
However, competition from rising Libyan output and U.S. oil could limit the upside for lighter Nigerian grades. Qua Iboe for September loading was offered at dated Brent plus $1.60 a barrel. Chevron, BP and Total were heard to be showing cargoes and a trader said a short loading programme was supporting the grade.
Distillate-rich Forcados was last offered at a strong premium of $1.70 above dated Brent. Indian Oil Corp. is running a tender to buy West African crude loading Sept. 20-30. The result was slow to emerge and a trader expected the refiner to take two cargoes. Another Indian refiner, BPCL, is running a tender to buy September loading cargoes. The tender closed on Aug. 4.