West Africa Crude-Nigeria Difference  Ease, Indian Tender Results Awaited

Nigerian prices edged lower on Tuesday to entice European refiners to mop up remaining September-loading cargoes, while traders awaited results of Indian tenders.
“Everything seems to be clearing, slowly but surely,” one trader said. 
Several traders said a September-loading Nigerian Agbami changed hands, though price details were slow to emerge after it was initially offered around dated Brent minus 20 cents on an fob basis.
Other Nigerian cargoes on offer from Monday did not resurface, and Unipec did not return to the Platts window to offer its early September cargo of Nigerian Antan. There was no other window activity.
Shell was still thought to have end-September-loading Bonny Light available, a trader said, pegging the grade at dated Brent plus 75 cents to $1 on an fob basis, down around 15 cents from recent estimates.
The level is close to the two-year low for the grade, which was hit three weeks ago. West African grades have been in overhang during the summer months, owing to a glut of sweet crude in the Atlantic Basin, which has also pushed the outright Brent futures structure into a rare contango, with the front
month trading below the following months.
Prices for international marker Brent have been jolted into a new pattern as booming U.S. oil output has reshaped the Atlantic Basin market. 
“Despite armed conflict in Libya, Iraq and Ukraine, the oil market today looks better supplied than expected, with an oil glut even reported in the Atlantic basin, where surprisingly steep demand contraction recently compounded the effect of relentless North American supply growth,” the International Energy Agency said in a report on Tuesday.
    * India’s IOC has issued a buy tender for various
October-loading crude grades, closing on Aug. 13. Its purchases
vary each month based on price, but in its previous tenders for
September loaders, IOC took Guinean Zafiro, Algerian Saharan
Blend and Nigerian Qua Iboe and Amenam. 
    * Traders were awaiting the results of a tender by India’s
MRPL for one cargo loading in September. 
    * State-run Petroperu has launched a tender to buy a 360,000
barrel cargo of a Latin American or West African crude to be
received at Conchan and Talara ports on September 26-30. It closes
August 14. 
Source: Reuters

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