WAfrica Crude-Nigerian overhang puts grades under pressure

http://www.reuters.com/article/2012/06/11/markets-oil-westafrica-idUSL5E8HB9IH20120611

LONDON, June 11 (Reuters) - Nigerian crude oil differentials
came under renewed selling pressure on Monday as unsold cargoes
competed with limited buying interest from Asia and Western
markets. 
    As many as 20 Nigerian cargoes for loading in July remained
unsold and on offer, traders said, just a week before the new
loading programmes for August were due to be announced. 
    Several light Nigerian crude oil grades saw their asking
differentials squeezed lower, particularly those with relatively
high yields of naphtha and gasoline, markets that have been
depressed in recent weeks. 
    One grade, the ultra-light crude Agbami, which is so light
it is sometimes classified as a condensate, has been sold at
least once at a substantial discount to the North Sea benchmark,
dated Brent, which is considered of inferior quality. 
    "Most of the Nigerian grades have suffered from low demand
in recent months," said a physical crude oil trader with an
independent commodities house. "Naphtha grades have been hit
particularly hard as crack values have narrowed and
Mediterranean grades are more competitive." 
     
    NIGERIA 
    * Qua Iboe: Nigeria's benchmark Grade eased 5 to 10 cents
per barrel to around dated Brent plus $1.80/$2.00, about 30-40
cents below levels only a week ago. A cargo was heard offered at
dated plus $2 a barrel and two cargoes were reported done below
that level. 
    * Bonny Light: assessed at Qua Iboe minus 20-30 cents. 
    * Agbami: Chevron was reported to have sold an Agbami cargo
for July 14-15 to Petrobras as low as dated Brent minus 75
cents, at the bottom of a reported talking range of minus 50-75
cents. 
    Yoho: differentials also also under heavy pressure as
naphtha cracks have fallen, traders said, but exact levels
unclear. 
         
    ANGOLA 
    * Angolan state oil company Sonangol has already sold all
its cargoes for July ahead of the loading programme for August,
due to be released at the end of this week. 
     
    ASIAN BUYING TENDERS 
    * India's largest refiner, Indian Oil Corp, bought up to 4
million barrels of West African crude in a tender for loading in
the second half of July, traders said. IOC bought 1 million
barrels each of Hungo and Agbami from Shell, plus 950,000
barrels of Kissanje from Sonangol and 950,000 barrels of Dalia
from Mercuria, they said. Prices were not immediately available.
IOC last bought a Kissanje cargo from Sonangol.  
         
    DATABASE  
    For a database of oil supply and demand fundamentals
upstream and downstream, Reuters subscribers can click on: 
    here 
 
 (Reporting by Christopher Johnson; Editing by Alison Birrane)