Financial Energy Review
by Jenifer Dike……….
Chevron Nigeria, one of the IOCs is set to offer it’s Nembe Brent at a discount and this is expected to be an attraction to Indian Refiners. As a result the Indian Refiners are moving in to mop up some Nigerian crude oil Cargoes.
Chevron was offering June-loading Nemba at dated Brent minus 70 cents which is about 2.7 percent discount for possible buyers.
This price discount is likely to swing demand towards the Nigerian cargoes even when Angola is dangling about 10 cargoes to the Indian Refiners for June loading.
Spot activity was lean early this week but the rise of Indian refining runs will likely keep prices propped up after the dismal levels seen two weeks ago.
Early this week Indian Refiners issued a new buy tender for west African crude loading June 9-18. The tender closes on May 13..
Meanwhile Nigeria’s flagship crude, Bonny light, rose by 1.20% to stand at $25.23 per barrel, according to the latest data. This happened as oil traders became more optimistic about oil production cuts.
Similarly, Brent crude gained about 3.37% to trade at $30.63 as at 1 pm Nigerian time on Tuesday. The slight increase was boosted by a recent pledge by the Saudis to further cut oil production in June. The deeper output cut is intended to help reduce the oil glut in the global market, which had occurred as a result of COVID-19’s negative impact on fuel demand
