Nigeria faces looming financial difficulty after 20 unsold crude cargoes
London, October 3, 2018 (AltAfrica)-Nigeria faces significant financial slowdown after its main source of income, crude oil is struggling for buyers in the international market
Reports say market is still stuck with an overhang of close to 20 unsold cargoes from the 58-strong October loading programme.
International oil traders disclosed to The Nigerian Guardian Tuesday that the November programme, the largest in six months, had seen fairly muted demand so far.
Spot trade slowed yesterday, as public holidays in China kept bidding at bay, although the backdrop for the West African market was healthy with flows to Asia set to reach their highest in two months in October, according to Reuters.
The Angolan November programme had about 10 cargoes left, down from about a dozen late last week, traders said.
The programme originally planned 46 cargoes for the month.
Cabinda was last on offer for loading mid-November at a premium of about $1.00 per barrel to dated Brent, broadly unchanged on the day, as was late November-loading Girassol that was offered at around dated Brent plus $1.45.
China’s financial markets, including commodities, are closed from October 1 to 5 for the National Day holiday.
Shipments of West African oil to Asia are set to hit a two-month high in October as Chinese refineries scramble for alternatives to Iranian crude before the United States sanctions take effect on November 4.
Loadings for Asia will rise to 2.52 million barrels per day (bpd) in October, equivalent to 75 per cent of total output from Angola, Nigeria, Republic of Congo, Ghana and Equatorial Guinea, based on Reuters’ calculations, shipping brokers and Refinitiv Eikon data.
Russian President Vladimir Putin will meet the Organisation of Petroleum Exporting Countries (OPEC) secretary-general, Mohammad Barkindo, on the sidelines of an energy forum in Moscow this week, RIA news agency quoted the Kremlin as saying.
With oil prices hitting fresh four-year highs, long-dormant proposals to allow the United States to sue OPEC nations are getting a fresh look in Congress, although they were once considered a long-shot to becoming law.
India’s Mangalore Refinery and Petrochemicals Limited (MRPL) is looking for up to four million barrels of crude, two million barrels for delivery from November 6 to 20 and another two million for delivery from December 6 to 20.
The tender closes on October 3 and the results are due by October 5.
Indian Oil Corporation Limited was said to be seeking an unspecified amount of sweet crude for November delivery, traders said.