Low demand leaves 50 Nigerian oil cargoes unsold

Amid the low crude oil demand caused by the coronavirus-induced lockdowns across the world, about 50 unsold cargoes of Nigerian crude are seeking buyers, with European demand largely non-existent.

Reuters reported on Thursday that India provided one of the few outlets for Nigerian oil as East Asian tenders were awarded to crude from elsewhere and a glut builds up.

Tenders for sweet crude oil by Thailand’s IRPC and

Taiwan’s CPC were not awarded to any West African grades, with the latter taking US oil instead.

A trader was quoted as saying Indian oil firms took in about 5-6 million barrels of Nigerian crude last week and 2 million so far this week, with India’s IOC awarding a tender to Total for Akpo crude and possibly one other cargo.

Contango in the global oil market has narrowed recently amid signs India and China are tapping vast amounts of floating storage collecting since demand dried up amid the coronavirus pandemic.

Oil majors and trading houses have been offering Middle

Eastern and West African oil stored at sea as spot prices strengthened in Asia, trade sources said.