Nigerian Qua Iboe Sells at $11.50 Premium as Oil Rallies
Amidst weak production volume, Nigerian crude oil grade Qua Iboe sells at $11.50 premium in the market. Crude oil prices rose amid a broader rally across markets, as well as ongoing signs of tightness, Australia’s ANZ Bank said in a Wednesday note.
Brent recently reclaim the $100 per barrel market after a slowdown in demand, triggered by covid-19 pressures that dragged China’s economic growth. READ: Nigeria’s Oil Grades Supply Falls Below Demand in Europe
Meanwhile, Russia held its spot as China’s top oil supplier for a second month in June as Chinese buyers cashed in on lower-priced supplies, slashing more costly shipments from Saudi Arabia, data showed on Wednesday.
The European Union will set out emergency plans on Wednesday to reduce gas demand within months, warning countries that without deep cuts now they could struggle for fuel during winter if Russia cuts off deliveries.
Indonesia is offering five exploration oil and gas working areas and one exploitation working area across the country in its first bidding round of this year, a senior energy official said on Wednesday.
In the physical markets, premiums continue to reach record levels, the bank noted. Nigerian Qua Iboe crude was at $11.50 per barrel above dated Brent this week and North Sea grade Forties was bid at $5.35/b premium on Brent, both of which are all-time highs.
In addition, a disruption along the Keystone pipeline reduced Canadian oil flows to US refiners, ANZ Bank said. China’s state-run and independent oil refiners reportedly lowered run rates in the last week on higher diesel and gasoline inventories, the bank said.
In the meantime, the market ignored news that Libya was restarting production, according to ANZ Bank. The El-Feel oil field returned to operation following politics-driven disruptions. The field has an output rate of 40,000 barrels per day. # Nigerian Qua Iboe Sells at $11.50 Premium as Oil Rallies
