Nigerian oil output recovery adds to surplus – traders

0
204

Dr Ibe Kachikwu, Minister of State for Petroleum Resources

Nigerian crude for August loading is proving slow to find buyers amid rising supply, oil trading sources said on Wednesday, a sign that an expected second-half rebalancing of the global market is getting off to a slow start.

According to Reuters, an increase in production in Nigeria and Libya, where conflict and unrest had curbed output earlier this year, is adding to the volume of light, sweet crude looking for buyers in the Atlantic Basin, despite an OPEC-led supply cut aimed at getting rid of a surplus.

Oil traders say there are at least 40 unsold August-loading Nigerian cargoes looking for buyers, the equivalent of almost half of daily world demand and a higher volume than at similar points in earlier months.

“It’s starting to clear but there are still 40 plus left,” said a trader, who said the excess supply…

Read More…..PM News