Nigeria Said to Have 20 Crude Cargoes for June Still AvailableRupert Rowling
Nigeria has about 20 crude cargoes of loading in June available for sale, out of 66 lots scheduled for export next month, according to four traders who participate in the market.
That’s more than normal for this stage of the month, said the people, who asked not to be identified because the information is confidential. The grades remaining include Abo, Bonny Light, Brass River, EA Blend, Forcados, Okwori, Pennington, Yoho and at least one of benchmark Qua Iboe crude, they said. That compares with nine March cargoes still unsold as of Feb. 7, four traders said at the time.
Africa’s largest oil-producing nation will export 58.1 million barrels, or 1.94 million barrels a day, next month, according to loading plans obtained by Bloomberg News. The June schedule includes five Bonny Light lots deferred from May as the grade remains subject to a force majeure. That compares with daily exports in May of 1.95 million barrels.
Royal Dutch Shell Plc declared force majeure, a legal step that protects a company from liability when it can’t fulfill a contract for reasons beyond its control, on Bonny Light exports after closing the Nembe Creek Trunkline on April 15 to remove oil-theft connections. The lack of reliability in Nigerian output is putting off potential buyers, the traders said.
Qua Iboe was today priced at a premium of $3.40 a barrel to Dated Brent, data compiled by Bloomberg show. It rose to the highest in almost a month at plus $3.60 on May 3.
Loading programs are monthly schedules of crude shipments compiled by field operators to allow buyers and sellers to plan their supply and trading activities.