A steep cut in Nigeria’s official selling prices has so far failed to reignite spot trade, traders said on Tuesday, with close to 30 April loading cargoes still lingering.
Nigeria’s May loading emerged last week, adding to the hefty amount of oil that will struggle to find a home. Demand for light and medium sweet Nigerian grades has plummeted as they yield high levels of jet fuel and gasoline – two of the refined products most hit by the global pandemic slowdown.
Chinese demand has been recovering but elsewhere demand is falling further. Taiwan’s CPC decided to increase run cuts in April. India, another major buyer, is starting to reduce refinery operations due to lockdowns in much of the country aimed at halting the spread of coronavirus, industry and company officials said.