Energy majors have yet to significantly reduce price offers for Nigerian crude despite sliding gasoline refining margins, traders said, possibly due to hopes for demand for gasoline from Saudi Arabia following attacks on its oil infrastructure.
A significant uptick of 500,000 barrels per
day (bpd) of gasoline has been scheduled to travel from Europe to the Middle
East over the last week.
The unusual flows indicate Saudi Arabia is looking to replenish oil products affected by a crippling attack on two of its main energy facilities Sept. 14.
At least one cargo of Qua Iboe continued to be offered at a premium of about $3.00 to dated Brent, likely by Exxon.
Despite a supply glut of at least two dozen
cargoes set to be exported in October, energy majors have not significantly
reduced offers, leading to sluggish trading.
Nigeria’s Bonga crude oil stream will load five cargoes in November, down from six in October.
- Reuters