Nigerian crude differentials showed more signs of recovery from record lows on Thursday, reflecting a wider rebound in the market on hopes of stronger demand.

Nigerian Qua Iboe was on offer at dated Brent plus 75 a barrel, a trader said. On Monday it was assessed at dated Brent minus $4.45, an historic low brought about by a collapse in demand and excess supply due to the coronavirus crisis.

It was not yet clear if buyers were prepared to pay a premium to dated Brent. A drop in freight rates has helped differentials to
recover as has Nigeria cutting output as part of an OPEC-led supply cut pact.

The size of the overhang in May-loading cargoes is coming down, a trader said.

 

Source: Reuters

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