Oversupply continued to weigh on differentials in West Africa on Thursday, with little fresh trading. Many buyers expected differentials to soften further, while pending tenders and an industry event further hindered new deals, Reuters reports.
There were some 60 unsold cargoes of Nigerian crude, including 20 from the June loading plan. The July Forcados export plan had not yet been issued, meaning there were between 6 and 8 additional cargoes that would likely come into the market.
Traders said Forcados would likely sell initially at a discount to dated Brent until it proved its reliability. Shell lifted force majeure on the grade more than a year after initially making the declaration.