|
|
|
 |
News
View |
|
|
|
|
|
|
| |
| Nigerian crudes under pressure from weak European demand on low refining margins |
|
| News Source：http://www.jinchemical.com/
; SendDate：2014-6-24 9:43:00 |
Nigerian crude values are falling sharply as the remaining July cargoes struggle to clear due to weak European demand caused by low refining margins, market sources said Monday.
There were still about 15 cargoes left in the Nigerian July loading program. Remaining cargoes usually all end up in Europe at this phase of the trading cycle.
But European demand for Nigeria and other West African cargoes has been very thin for July, due to weak product cracks caused by fragile refining margins.
"There are still approximately 15 cargoes remaining and now we are hearing that there will be more cargo injections for July," said a trader.
"There is a lack of interest on the market due to horrifying margins and freight rates out of WAF are also picking up which is not helping," he added.
Sources said offer levels had also fallen steadily in the last week, with grades like Bonny Light and Brass River falling below the Dated Brent plus $2/barrel mark.
Bonny Light was assessed at Dated Brent plus $1.74/b on Friday, making it the lowest value seen since January 31, 2014, Platts data showed. And sources said values would fall further if demand remained this subdued.
In the Platts Market On Close assessment process on Friday, Trafigura offered a 1 million barrel FOB cargo of Bonny Light, loading July 22-23, to Dated Brent plus $1.80/barrel without attracting a buyer.
"There is an oversupply of barrels not only on WAF, but in the sweet market more generally," a second trader said.
"The rally in the flat price with the Iraquncertainty means that, as a result, margins are not doing fantastically well...That period of low demand with the naphtha and distillate crack not performing...and domestic production in the US is constantly displacing the important grades."
|
|
