Official prices for Nigerian crude have hit their lowest in
at least a decade as a nagging oversupply of physical oil takes its toll.
The Nigerian National Petroleum Corp (NNPC) lowered the
official selling price for its largest crude oil stream, Qua Iboe, to dated
Brent plus 35 cents per barrel, the lowest differential since May 2005.
Oil traders said Bonny Light, once in demand for its high
yield of valuable motor fuels, fell to dated Brent plus 23 cents, with the
differential below May 2005 levels.
Sellers of Nigerian crudes have aggressively pushed into new
markets from Uruguay to China, but are coming up against other crude producers,
including fellow members of the Organization of the Petroleum Exporting
Countries, as well as new refineries that are geared towards heavier oil.
As a result, as much as 10 million barrels of Nigerian
grades that have already loaded are floating in vessels, taking months in some
cases to find buyers.
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