Nigerian crude cargoes begin to clear slowly
Differentials for Nigerian crude edged up on Wednesday after a flurry of unsold cargoes traded on the spot market, although traders said the market was still oversupplied and the recent show of strength may not last.
After the drift lower in differentials, several more unsold Nigerian cargoes have cleared, so that fewer than half a dozen are available from the August programme and around 12-15 from the September programme, traders said. This is down from close to 30 at the start of the week.
Both Forcados and Qua Iboe have been bid up, traders said. Qua was last offered at more than $1.50 a barrel above dated Brent, from $1.00 the previous day. A cargo of Forcados was heard to have been offered up around $1.35 a barrel above the dated price, from $1.30 the previous day.