Nigerian Crude differentials steady after active bidding by BP


LONDON, Sept 5 – Nigerian differentials held near one-month highs on Wednesday, buoyed by active bidding once again from BP in the daily trading window, while a series of tenders due this week kept spot trade more muted.

* BP was said to be bidding for as many as 10 cargoes of October-loading Bonny Light, Qua Iboe, Forcados and Bonga, which traders said was an unusually large amount given that there are only 26 cargoes of all four grades in the various loading programmes for next month.

* The four grades are used to underpin the contracts-for-difference swaps market and trading in the physical market can frequently be linked to a position on the paper side.

* BP was said to be bidding for cargoes of all four loading in late October at a premium of $1.70 a barrel to dated Brent, unchanged from indications the previous day.

* Of the 56 cargoes in the broader Nigerian October loading programme, around 25 were said to be available for sale.

* Petroineos was said to have bought cargoes of Cabinda and Congolese Djeno from Chevron, as well as the one October-loading cargo of Nigerian Pennington crude.

* Around a dozen of the 49 cargoes in Angola’s October-loading crude were believed to be still available for sale, down from above 20 a week ago, one trading source said.

* State oil company Sonangol has sold out of its 17 October-dated cargoes, traders said earlier this week.

* Major ports around the Yangtze River Delta will impose tighter rules on emissions from vessels in and around the ports starting on Oct. 1, a newspaper run by China’s Ministry of Transport said in a report.

* Indonesia expects to issue rules next week prioritising Pertamina and other domestic refinery operators in sales of crude oil produced locally by contractors, Oil and Gas Director Djoko Siswanto said on Wednesday. The rules require Pertamina to agree on crude purchases at prices based on business negotiations with domestic oil producers, Siswanto told reporters at a news conference.

* India’s IOC is holding a tender, believed to be for around 2 million barrels of crude for delivery between Nov 1-10, that closes on Wednesday and for which the results will be available on Thursday, traders said.

* Indonesian refiner Pertamina was said to be seeking light sweet crude for late October delivery, although traders said the amount was unclear.

* Thailand’s PTT is seeking between 300,000 and 1 million barrels of sweet crude for delivery between Nov 5-20. The tender closes on Wednesday and the results are due the following day.

* Uruguayan refiner ANCAP is seeking a 360,000-barrel cargo of light crude for delivery between Nov 12-16. The tender closes on Thursday. (Reporting by Amanda Cooper; Editing by Jane Merriman)

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