Thursday, July 17, 2014

Crude oil price weighed down by weak demand

Crude oil price differentials for Nigeria stayed under pressure, Friday, having fallen this week, weighed down by weak demand from large Asian buyers.
Nigeria’s largest stream, Qua Iboe, was assessed at its lowest premium to dated Brent in two years. Refining margins in Europe and Asia have been weak, curbing non-essential buying interest, say traders. “Margins and cracks have improved, but it does not seem to changed things very much,” said one.

W. Africa Crude-Sagging demand keeps differentials weak

LONDON, June 30 (Reuters) - Nigerian crude oil cargoes
failed to attract much interest from buyers on Monday, traders
said, with expectations that differentials will fall further
keeping activity thin. 
    There were still around seven cargoes due to load in August
available on top of more than 50 for July, a trader said. 
    Slack demand from European refiners that have cut runs due
to lower margins has hit demand, while sharper drops in
differentials in crudes from other regions have limited demand
from Asia and elsewhere.