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Market demand for Nigeria’s crude oil rebounds

Nigerian crude differentials showed more signs of recovery from record lows on Thursday, reflecting a wider rebound in the market on hopes of stronger demand, according to a market report from Reuters.

Qua Iboe was on offer at dated Brent plus 75 a barrel, a trader said.

On Monday it was assessed at dated Brent minus $4.45, a historic low brought about by a collapse in demand and excess supply due to the coronavirus crisis.

It was not yet clear if buyers were prepared to pay a premium to dated Brent.

A drop in freight rates has helped differentials to recover as has Nigeria cutting output as part of an OPEC-led supply cut pact.

The size of the overhang in May-loading cargoes is coming down, a trader said.

The country relaxed a four-week lockdown, causing more vehicular movements that helped drive up demand.

International Brent was offered at $29.87 per barrel as at 2:pm Nigerian time after a previous close of $29.37 per barrel on Thursday.