Nigeria's April crude cargoes struggling to attract buyers

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"I have not heard anything trade. It looks very quiet, "one crude trader said, while another said:" Buyers have pulled back quite a bit and we may be in for a bit of a waiting game on the Nigerian front. "

"Northwest European buyers might consider West African grades to be on the expensive side. The structure is not helping a lot, "said a third crude trader said. "The North Sea has come off a bit, so competition for Nigerian grades is stronger. Just on an economic perspective, people will swing away from West African crude. Current linear programming runs would signal that as well. "

North Sea BFOE grades saw significant downward movement last week, weighed on in part by large quantities of crude oil.

The Dated Brent has been rated at 56.5 cents / b Tuesday, down 1 cent / b day on day.

The Brent and Forties Blended Bread and Dried Brent in the United States. Dated Brent in the last decade of the world.

Some traders, however, were not expecting North Sea crude to displace West African grades just yet, with one trader saying the distillate yield of West African crudes would keep them competitive.

High freight costs in Europe were another factor pressuring Nigerian crudes. Although Suezmax freight rates have fallen back to multi-year highs late November, freight rates were still higher year on year. The West Africa to UK Continued to be assessed at $ 10.11 / mt on Tuesday, according to S & P Global Platts data, compared with $ 6.95 / mt on March 5, 2018.

"Nigerian [Nigerian value] was over-hyped and it appears to be in the air. Urals, CPC, Sahara, and Libyan … especially as El Sharara is expected to be back, "a market source said.

In the Mediterranean, Kazakhstan's Blend and Algeria's Saharan Blend Blend, both light, naphtha-rich grades, have been left behind in the past. force majeure, which had been in place for almost three months, was lifted Monday.

"CPC is the most economic grade at the moment in the Med," said one crude trader.

CPC Blend was assessed on Tuesday at a discount of $ 1.95 / b to the Mediterranean Dated Strip and Saharan Blend at a discount of Dated Brent minus 5 cents / b to the Mediterranean Dated Brent strip.

US refineries have increased their intake of US domestic crude oil from the US Gulf coast, he said.

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