Nigerian crude spot activity weak

Spot activity was weak on Monday as a sharp drop in light end margins kept buyers at bay.

Profit margins for making petroleum feedstock naphtha have hit their weakest in over a decade in Asia and a seven-year low in Europe as the global economy weakens and large-scale processing unit outages hurt demand.

Gasoline margins in Europe have also dipped. Nigerian grades are mostly light, sweet and have higher yields of those products.

Nigerian cargoes have struggled to sell after early month price indications dissuaded customers, although traders said offers were beginning to come down. Offer levels for Bonny Light and Qua Iboe were being heard at around dated Brent plus $2.50.

 

Source: Reuters

 

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