Nigerian crude for December loading remained in ample supply, traders said, suggesting further downside for premiums from current levels. Increasing supply of light, sweet crude, partly due to the restart of supplies from Libya, has been weighing on Nigerian differentials. The Angolan crude, by contrast, traded out quickly for December and is mostly sold. “I think there has to be more downside,” said a trader of Nigerian crude with a European oil company.
* One trader estimated there were more than 30 cargoes of December-loading Nigerian crude left, although some of these could head into companies’ own refining systems.
* “There’s an awful lot left,” another trader said, without giving a figure of unsold cargoes.
* Qua Iboe: Traders valued cargoes at between dated plus $2.70 to plus $2.90 on Monday, lower than on Friday. In a recent deal, Conoco was heard to have bought the Dec. 11-12 cargo from Exxon. Initial offers of Qua for December had been at more than
dated plus $4, a level buyers baulked at given the more ample supply picture.
* Bonny Light: Said to be trading at a 10 to 20-cent discount to Qua Iboe. At least two cargoes are thought to still be available.