Nigerian crudes for March loading have sold well with less than 10 cargoes unsold from the March program, because of healthy demand from Europe and India, although the remaining grades were struggling to sell, sources said Wednesday.
More Nigerian crudes are expected to head to Europe in March compared to February, which was boosting some of the Nigerian light sweets, sources said. West African Suezmax freight rates have fallen sharply in the last months which has made the West Africa-to-Europe arbitrage more economical.
Freight rates for a Suezmax on a West Africa-to-Northwest Europe route were pegged near Worldscale 50-55 Wednesday, a fall of almost w80 points since early January.
According to Platts tracking data, at least 25 cargoes or 36% of the Nigerian cargoes loading in March will be going to Europe, compared with at least 15-17 cargoes or 25% in February.
But sources said spot activity stayed thin with an industry event in London this week, with about five to 10 March cargoes still unsold.
"There are not many Nigerian cargoes left [from the March program]. There are less than 10 cargoes remaining, but these cargoes are stuck a little now [because of a lack of activity]. But the market has been stable because freight has come down a lot which has meant some more cargoes will go to Europe," said a trader.
Some of the grades still available included Bonga, Bonny Light, Qua Iboe, Forcados and Antan, traders added.
Sources also said buoyant demand from India for March is another reason for a steady Nigerian market.
Twelve Nigerian crude cargoes, each carrying close to 1 million barrels, will be going to India in March, making it more than 16% of the export program compared to nine or 15% in February, Platts tracking data showed.
India's IOC has already bought up to 8 million barrels of West African crude for April loading, the majority from Nigeria, which should continue to support the market.
