West Africa Crude: Nigerian overhang clearing, diffs still under pressure
Nigerian crude oil cargoes for August loading are slowly finding buyers, traders said on Thursday, although downward pressure continued on Angolan and Nigerian differentials.
Weak refinery margins, ample supplies and lacklustre demand from big buyers such as China have all put pressure on West African crude differentials.
Less than 10 Nigerian cargoes loading in August are still available, although this means that demand for September cargoes has so far been sluggish.
“August barrels are slowly clearing, but September barrels are not moving,” a trader of Nigerian crude said.
“To be traded, the market has had to move down,” he added, referring to Angolan crude.