Demand for Nigerian crude remains weak across Europe despite gradual easing of lockdowns

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May 8, 2020
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Slow European demand for Nigerian crude on Wednesday gave cautious hope to Nigerian and other West African traders with India and China showing the biggest interest in importing oil.

According to Reuters, traders confirmed only three cargoes of Nigerian Bonga crude oil would be exported in July after Shell, operator of the Bonga export terminal, closed down its operations so as to conduct a routine maintenance.

Sellers were relentless in trading Nigerian crude cargoes at comparatively high prices with BP (formerly The British Petroleum Company PLC and BP Amoco PLC) offering one cargo of Forcados oil at dated Brent plus $2.85.

Demand from Asia, particularly from Indian Oil Corporation, which had purchased a good number of July-loading cargoes last week in a tender, was improving but European demand remained depressed, traders said.

They added that some quantity of the floating stock of West African oil was being discharged in certain parts of East Asian markets, meaning shipping could be find more space and demand was increasing.

Nevertheless, refiners, mostly in Europe, had made attempts to ensure longer-term floating stock shortly after the coronavirus pandemic broke out and are still upholding the decision.