Nigerian crude oil has continued to attract buyers as traders said demand from Asia, especially from India’s IOC, which has absorbed several July-loading cargoes in a tender last week, was encouraging.
This is despite stagnant demand from European buyers that offered little hope to sellers of Nigeria’s crude yesterday. But China and India continued to show the most appetite for oil imports.
Traders said there would be three cargoes of Nigerian Bonga crude oil exporting in July after Shell began a routine two-week maintenance of its export terminal on May 21.
Also, sellers of Nigerian crude continued to offer cargoes at relatively high prices, with BP offering a cargo of Forcados at dated Brent plus $2.85.
Floating storage of West African crude was being partially discharged in some East Asian markets, traders said, in a sign that shipping could free up and demand was rising. Still, refiners – especially in Europe – had sought to guarantee longer-term floating storage at the beginning of the coronavirus outbreak and were not yet drawing on it.