Nigeria's state-owned NNPC has released its delayed crude official selling prices (OSPs) for May, and has cut values for all its grades from the decades-lows in April.
All Nigerian grades for May are at discounts to North Sea Dated, some of the lighter ones by upwards of $5/bl. At current Dated levels, this means some Nigerian grades will sell for less than $10/bl next month. The price cuts are borne of necessity — Nigeria desperately needs to place its crude, and lacks onshore storage facilities. Tankers laden with Nigerian grades are already idling off its shores, waiting for a home.
NNPC trimmed prices for key grades by between 47¢/bl and 98¢/bl on the month. Market participants had expected larger cuts for the country's main streams.
"They could have been more generous in supporting contractors", said a trader.
NNPC cut Qua Iboe's price by 82¢/bl from April to a discount to North Sea Dated of $3.92/bl, and cut the price of Forcados by 91¢/bl on the month to a discount of $3.91/bl to the benchmark.
It made 66¢/bl cuts to Bonny Light and Brass River, to discounts of $3.95/bl and $3.82/bl, respectively.
Among the bigger streams NNPC again priced Egina the highest, at a $2.49/bl discount to Dated. NNPC considers Egina a condensate, even though its gravity suggests it is crude.
Among lighter grades NNPC cut the price of Agbami and Akpo by $1.30/bl and $2.38/bl to $5.30/bl and $6.38/bl below the benchmark respectively, and cut the price of heavy sweet Eremor by $3.53/bl to a discount of $7.53/bl, the lowest value for the 33 grades NNPC listed.
NNPC's cut to the highly acidic medium-sweet Usan was 53¢/bl, to a discount of $4.53/bl.
The highest priced grades remained medium and light-sweet EA Blend and Okwuibome at $1.51/bl and $1.69/bl discounts, respectively.
NNPC usually publishes its official selling prices (OSPs) for the upcoming month between the 15th and 25th of the preceding month. The OSPs for April-loading cargoes were published on 23 March, while the March and February OSPs were issued on 19 February and 16 January, respectively.
| Nigeria official formula prices | $/bl | ||
| Grade | May | April | ± |
| Bonny Light | -3.95 | -3.29 | -0.66 |
| Qua Iboe | -3.92 | -3.10 | -0.82 |
| Escravos | -3.70 | -2.74 | -0.96 |
| Brass River | -3.82 | -3.16 | -0.66 |
| Pennington | -3.60 | -2.79 | -0.81 |
| Forcados | -3.91 | -3.00 | -0.91 |
| Amenam | -3.95 | -3.60 | -0.35 |
| Yoho | -3.92 | -3.25 | -0.67 |
| EA | -1.51 | -0.88 | -0.63 |
| Abo | -4.15 | -3.35 | -0.80 |
| Okono | -3.63 | -2.97 | -0.66 |
| Antan | -3.64 | -3.13 | -0.51 |
| Okwori | -2.57 | -1.98 | -0.59 |
| Bonga | -4.03 | -3.05 | -0.98 |
| Erha | -3.40 | -2.93 | -0.47 |
| Agbami | -5.30 | -4.00 | -1.30 |
| Akpo | -6.38 | -4.00 | -2.38 |
| Ukpokiti | -3.72 | -3.01 | -0.71 |
| Obe | -4.31 | -3.73 | -0.58 |
| Ima | -5.94 | -4.00 | -1.94 |
| Okoro | -3.38 | -1.71 | -1.67 |
| Oyo | -2.29 | -1.54 | -0.75 |
| Okwuibome | -1.69 | -0.59 | -1.10 |
| Ebok | -4.92 | -3.82 | -1.10 |
| Asaramatoru | -3.47 | -2.85 | -0.62 |
| Eremor | -7.53 | -4.00 | -3.53 |
| Usan | -4.53 | -4.00 | -0.53 |
| Zafiro* | -4.12 | -2.67 | -1.45 |
| Otakikpo | -3.95 | -3.19 | -0.76 |
| Aje | -3.95 | -3.19 | -0.76 |
| Ajapa | -3.70 | -2.90 | -0.80 |
| Jones Creek Blend | -3.91 | -2.90 | -1.01 |
| Egina | -2.49 | -1.00 | -1.49 |
| Agu | -4.92 | -3.72 | -1.20 |
| Premium for deferred pricing | 0.07 | 0.07 | 0.00 |
| Premium for advanced pricing | 0.07 | 0.07 | 0.00 |
| *Equatorial Guinea | |||
