Nigeria's NNPC Tenders September Crude as Mideast Tensions Support Prices

Nigeria's state-owned NNPC has offered two crude oil cargoes for September loading in a spot tender, a development watched closely by a market where prices are holding steady amid geopolitical uncertainty. The move comes as sellers of West African crude have begun to increase their offer prices, citing growing supply risks in the Middle East.

Tender Details

According to a tender document, the Nigerian National Petroleum Corporation is offering two cargoes, with bids due by Tuesday evening, West Africa Time. The specifics of the tender are:

• A 950,000-barrel cargo of Cawthorne crude, scheduled to load between September 21-22.
• A 950,000-barrel cargo of Bonny Light crude, set to load from September 30 to October 1.

This tender follows an offer on Friday for Nigerian Qua Iboe crude, which a trader noted was priced at dated Brent plus $6.00 for a cargo loading September 6-7.

Market Context

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Price differentials for West African crude have remained stable even as the new September offers emerge. However, the market still faces an overhang from the previous month, with a trader reporting on Thursday that approximately 20 West African cargoes for August loading were still available for purchase.

Despite the available supply, traders said sellers are firming up their price expectations due to ongoing disruptions in key Middle Eastern shipping lanes. Overall trading activity has been limited as market participants await more clarity on the volatile situation in the Strait of Hormuz and the Red Sea.

Shifting Trade Flows

The concerns over Middle Eastern supply are already impacting global buying patterns. On Saturday, Anuj Jain, head of finance at Indian Oil Corporation, said the company has increased its purchases of West African and Latin American crude oil to compensate for potential disruptions from its traditional suppliers.