• 1 min UAE Oil Giant Seeks Partnership For Possible IPO
  • 45 mins Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 2 hours VW Fails To Secure Critical Commodity For EVs
  • 3 hours Enbridge Pipeline Expansion Finally Approved
  • 4 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 hours OPEC Oil Deal Compliance Falls To 86%
  • 20 hours U.S. Oil Production To Increase in November As Rig Count Falls
  • 22 hours Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 1 day Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 1 day EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 1 day Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 1 day Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 4 days Texas Shutters More Coal-Fired Plants
  • 4 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 4 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 4 days Chevron Quits Australian Deepwater Oil Exploration
  • 4 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 5 days Husky Energy Set To Restart Pipeline
  • 5 days Russia, Morocco Sign String Of Energy And Military Deals
  • 5 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 5 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 5 days India Needs Help To Boost Oil Production
  • 5 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 5 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 5 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 5 days District Judge Rules Dakota Access Can Continue Operating
  • 6 days Surprise Oil Inventory Build Shocks Markets
  • 6 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 6 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 6 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 6 days Oil M&A Deals Set To Rise
  • 6 days South Sudan Tightens Oil Industry Security
  • 7 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 7 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
  • 7 days Indian Hydrocarbon Projects Get $300 Billion Boost Over 10 Years
  • 7 days Record U.S. Crude Exports Squeeze North Sea Oil
  • 7 days Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan
  • 7 days Supply Crunch To Lead To Oil Price Spike By 2020s, Expert Says
Is Iraq On The Brink Of Civil War?

Is Iraq On The Brink Of Civil War?

Kurdistan has dominated Middle Eastern…

Chinese EV Boom Could Crash Oil Prices

Chinese EV Boom Could Crash Oil Prices

Most oil majors acknowledge that…

Is The Glut Easing? Vitol Offering 4 Million Barrels Of Stored Oil

Oil Rig

In a sign that the huge global oversupply may be starting to clear, commodity trading giant Vitol Group is offering to ship to Europe 4 million barrels of Nigerian crude oil that it has been stashing away in storage, Bloomberg reports, quoting five traders familiar with the move.

Vitol is reportedly offering 4 million barrels of Nigeria’s Qua Iboe grade that it has been storing in facilities in Saldanha Bay on the southwestern coast of South Africa, Bloomberg sources say. To compare, typical trades are of 1 or 2 million barrels each.

The offer for shipment of stored Qua Iboe grade comes when regular loadings of the grade are between 10 and 13 days behind schedule, traders told Bloomberg. While under normal export schedules Qua Iboe is the largest export grade from Nigeria, there were no cargoes collected in the last week of last month, according to ship-tracking data compiled by Bloomberg.

Since OPEC began its coordinated effort to reduce global oil supply to try to ease the glut and rebalance the markets, the pricing structure of the market has changed, with contango shrinking. Before that, at the height of the glut, it was profitable for traders to store oil because the shortest-term prices were cheaper than oil futures that were further forward in time.

Related: Exxon Betting Big On U.S. Shale

With the contango structure narrowing, it is no longer economical to stockpile,” Ehsan Ul-Haq, principal consultant at KBC Advanced Technologies, told Bloomberg. “Some refiners might be willing to take large volumes of West African crude if they can get it before they end their seasonal refinery turnarounds,” Ul-Haq noted.

Oil traders have already sold more than 10 million barrels of crude stored in tankers off the coasts of Asia in what could be seen as the start of the drawdown of the huge oversupply and market tightening following OPEC’s production cut deal.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Citizen Sane on March 04 2017 said:
    Could it be possible that they are trying to clear out their storage to allow for oil field production that has no place to go?? It is not appropriate to assume that the attempt to clear out these tanks is because of a reduction of global stockpiles. In fact this could be one of the indications that the oil field community is running out of places to put their production.

    Sane

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News