The light crude oil increased in price yesterday, September 16,2009; buoyed by better complex refining margins in Europe but there have been some evidence of an overhang of cargoes loading that would take place in October, 2009.
Asian buyers have demanded more of this oil and USA buyers were also said to be in the market for lighter Nigerian grades.
But, with Nigerian official selling prices (OSPs) due to be released next week, traders said some oil companies appeared to be trying to talk down spot values.
Conflict in Niger Delta
Nigeria’s main militant group said on Wednesday it was extending a two-month-old ceasefire in the oil-producing Niger Delta by 30 days but warned the government an amnesty programme had not yet tackled key issues.
The Movement for the Emancipation of the Niger Delta (MEND) said “it would allow more time for talks but threatened renewed strikes on the oil industry if substantive negotiations were not held.”
The truce declared by MEND ended at midnight on Tuesday, September 15, 2009.
MEND, responsible for attacks that have wrought havoc on Africa’s biggest energy industry over the last three years, declared a 60-day ceasefire on July 15 to allow for peace talks after the release of its leader, Henry Okah.
However, the president, Umaru Musa Yar’Adua, has offered an unconditional pardon to militants who give up arms by October 4, 2009. This attempt to resolve years of unrest between MEND and the government has prevented Nigeria from pumping above two-thirds of its oil capacity.
In a recent attack by MEND this week, an eyewitness said “that the gunmen in speedboats attacked a fishing trawler near a floating production storage facility operated by Addax Petroleum off Akwa Ibom State before being repelled by an Addax security vessel.”
Nigerian crude
Up to 20 Nigerian cargoes were still reported unsold for October lifting, with almost all grades available although sellers were reported to be keeping offering discretely.
Traders said there appeared to be some attempt on the part of contract holders to talk down Nigerian values ahead of the release of OSPs next week.
Benchmark Qua Iboe was assessed slightly higher at around dated BFOE plus $1.60, after a deal done at around plus $1.55 last week. Exxon was said to have sold one of its two last full cargoes for October.
The last two Brass River cargoes for October lifting were both said to be on offer at a discount of about 20 cents to Qua Iboe. Traders said recent loading disruptions meant the grade was trading at slightly lower premiums than its quality would suggest.
At least, three of the five Akpo condensate cargoes loading in October were said to have been sold in recent days, including the October 17-18 Total cargo that went to Petrobras, the Total October 28-29 cargo that was reported sold to BP, and an October 10-11 NNPC cargo, that traders said went to Shell.
At least two Erha cargoes were reported to be available and traders assessed the grade around 10-20 cents below Qua Iboe.
Angola
Preliminary loading programmes from trade sources show Angola will export 1.82 million barrels per day of crude in November, down from a revised 1.93 million bpd scheduled to load in October.
The preliminary programme indicates 57 cargoes of crude oil will be loaded onto ships in November, down from 63 cargoes in October, when planned exports hit a 2009 high.
Asian Buying Tenders
India’s state-run Hindustan Petroleum Corporation (HPCL) has opened a regular monthly tender to buy sweet crude oil for November loading. The tender closes today, with offers to remain valid until Friday, September 18,2009.
The International Oil Company (IOC )also has opened a tender to buy sweet crude for November delivery. Offers must remain valid until Friday.
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