Reuters confirmed that fifty cargoes of Nigeria’s Bonny Light crude oil await buyers in the international market, even after India purchased a bulk of it yesterday. Indicating that the effect of Covid-19 on the volatile international oil market is yet to abate.
According to international news agency, India is one of the few outlet for Nigeria’s Crude in East Asia but gluts begins to build up when tenders were awarded to crude from elsewhere. India, however purchased a bulk of the Nigeria’s crude yesterday despite the Covid-19 pandemic.
It stated: “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 U.S. oil instead.
“Indian oil firms took in about 5-6 million barrels of Nigerian crude last week and 2 million so far this week, a trader said, with India’s IOC awarding a tender to Total for Akpo crude and possibly one other cargo.
“There remain around 50 unsold cargoes of Nigerian crude seeking buyers, with European demand largely non-existent. 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.”
The price of Nigeria’s Bonny Light currently hovers around $33.56 per barrel rising from as a low as below $20 per barrel in the international market as a result of drop in global demand for crude occasioned by the Covid-19 pandemic.