Differentials for the lightest end of the Nigerian petroleum complicated-- light, condensate-like Agbami and also Akpo grades-- against benchmark Dated Brent have actually fallen as a wealth of pleasant crude in the Atlantic Basin has actually made it tough for it to land right into Europe and as major purchaser India has mostly sated its March-loading need.
On Thursday, Platts assessed Agbami FOB and also Akpo FOB cargoes at a discount rate of $1.10/ b to the West African Outdated strip. This is the lowest level for the two qualities given that December 12, 2015, when they were at Dated Brent minus $1.15/ b.
Both grades have actually dropped precipitously since the beginning of December, when Agbami briefly went into positive region at a costs of 5 cents/b to the WAF Dated Strip as well as Akpo was evaluated at level to the WAF Dated Strip.
Large quantities of Mediterranean wonderful crudes such as Kazakhstan's CPC Blend as well as Algeria's Saharan Blend, refinery maintenance in Europe, sluggish demand for light naphtha-rich North Sea qualities and also more of a concentrate on hefty sours by a number of refineries-- and succeeding dropping differentials for pleasant Mediterranean and also North Sea qualities-- have made it difficult for Agbami and Akpo to find purchasers in Europe.
Around half of the eight Agbami March-loading freights have sold and three of the 4 Akpo March-loading freights additionally still offered, trading sources stated.
Significant buying refineries of Nigerian crude in India have likewise currently finished their March tendering cycle as well as because of minimal passion from Europe, some of the typically attractive grades to India, like Agbami, will have to mark down additional to locate homes, traders said.
" biocides manufacturer has a lot of less expensive choices in the North Sea and in the Med-- I don't assume Europe [will be] supporting Nigeria," said one West African crude investor. "India might come back in but I do not think they will certainly purchase [all the unsold barrels] Agbami and also Akpo are mosting likely to battle in next couple of weeks and also will certainly deal with additionally."
Differentials for the lightest end of the Nigerian petroleum complicated-- light, condensate-like Agbami and also Akpo grades-- against benchmark Dated Brent have actually fallen as a wealth of pleasant crude in the Atlantic Basin has actually made it tough for it to land right into Europe and as major purchaser India has mostly sated its March-loading need.