Sellers cut offer prices for a variety of Nigerian grades on Wednesday, though buyers remained reluctant because of a surplus of unsold crude and slowing demand from China’s independent refineries, traders said.

Asian gasoline refining margins have fallen into negative territory for the first time in seven years and China’s so-called teapot refineries have more than enough crude in storage to cover immediate needs, traders said.

Offers for Nigerian Qua Iboe eased to about $1.65 a barrel above dated Brent, from $1.70 earlier this week. Chevron and Total were said to be offering, but no buyers stepped in. In the Nigerian market, traders estimate that nearly a quarter of the December programme remains available.

Source: Reuters