Nigerian crudes continued to drop at a consistent rate as a result of slim demand in the middle of an excess of freights from both the January and also February programs, trading resources claimed Monday.
Nearly all of the key Nigerian crudes go to multi-year lows, and with the photo looking much more bearish, worths were anticipated to decrease even more.
Nigeria's front runner quality, Qua Iboe, was secured near to Dated Brent plus $0.50/ barrel Monday mid-day. It was analyzed at Dated Brent plus $0.51/ b Wednesday, the most affordable because April 22, 2009, Platts information showed.
The Nigerian market remained oversupplied with roughly 20 million January barrels still offered together with practically the entire February program.
Traders claimed that as a result, crude worths were anticipated to drop, especially with such weak acquiring passion from Oriental and European refiners.
" There is a large overhang [on WAF]," a trader claimed. "The Middle Eastern producers are encroaching on WAF purchasers. Oilfield Chemicals are offering eye-watering discount rates. If I can get a Murban at a $2/b discount versus Bonny Light after that Bonny Light has to boil down [greatly] to compensate for the freight differentials for it simply to compete. I wouldn't be amazed if Bonny Light and also Qua Iboe most likely to Dated Brent plus $0.30/ b quickly."
Similarly, the light pleasant Agbami was fixed near Dated Brent minus $0.90/ b on Monday, as well as this quality was assessed at Dated Brent minus $0.86/ b on Friday, the weakest given that November 12, 2012, according to Platts information.
Traders said the January 30-31 Agbami stem had actually been sold by a trader at Dated Brent minus $0.90/ b but information of the customer might not be promptly confirmed. Traders stated Agbami January freights were being provided weak than Dated Brent minus $0.50/ b as well as with both gas and also naphtha splits really weak, naphtha-rich light wonderful crudes such as Akpo and also Agbami were dropping greatly.
" Naphtha splits are horrible, the light [crudes] are enduring," the investor said. "The ultra-light crudes [like Agbami] remain in even worse problem. The February program for Agbami hasn't moved at all."