30 Nigerian oil cargoes abandoned over sluggish demand

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Market report says there were about 30 oil cargoes yet to find buyers at the international market.

This,  observers say has made Nigeria unable to fully reap the benefits of increasing crude oil prices at the international market,

Market data report obtained from Reuters, said as of Tuesday, between 20 and 30 crude cargoes for November were without buyers, far more than was typically expected to be left over at this stage of the trading cycle.

The market is “very, very sluggish,” another trader said. “The market is going down, margins look bad,” the report said quoting trading sources.

Although some of Nigeria’s crude grade such as Bonga crude was offered at a premium of $9 a barrel to the benchmark dated Brent, while Escravos and Forcados were on offer in excess of $8 in October, however, the report said freight rates have since jumped and refiners’ profit margins have narrowed, weighing on demand.

The low demand had in turn caused the country’s crude grades to fall by $1 to $2 a barrel, traders said.

Crude oil prices in some of the world’s main physical markets have weakened due to a jump in freight costs and a drop in refining margins, according to traders and London Stock Exchange Group data, suggesting demand weakness that could filter through to the futures market.

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Francis Ogwo
The young and goal driven writer and cinematographer started his journalism as a print journalist in Kaduna in 2005 writing for Kaduna Chronicles Newspapers, Liberator Newspapers where he became the South Bureau Chief. In 2008, he moved into TV production with an employment into Siverbird Television and Rhythm Fm as a Correspondent. He got certified by Independent Television Producers Association of Nigeria(ITPAN) in 2009. After five years of hardwork and training, he was employed as Associate Producer, Moments With Mo and subsequently Producer, Playground on HipTV. Francis currently majors in documentaries and high profile scripts for news and movies. He is currently a Senior Contents Producer at News Central TV

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