Offer premiums for Nigerian grades have climbed, a trader said on Friday, as West African countries benefit from Red Sea disruptions that have limited the supply of Middle Eastern crude into Europe.

The volume of crude going to Europe from the Middle East nearly halved to about 570,000 barrels per day in December from 1.07 million bpd in October, Kpler data shows.

European refiners are therefore in the market for crude from countries like Nigeria, although grades are seeing varying levels of interest depending on their products’ yield, analysts say, with heavier grades that yield more fuel oil/middle distillates more in demand.

Medium sweet grades, such as Egina, are being offered at dated Brent plus $8 a barrel, the trader said, up from the bid of Brent plus $6 a barrel earlier this week.

Other medium sweet grades, including Bonga and Forcardos, are also on offer at a relatively high dated Brent plus $5 a barrel.

Still, even lighter grades, such as the light sweet Qua Iboe stream is worth around dated Brent plus $3 a barrel, the trader added, compared to $1.50 to $1.60 a barrel earlier this week.

Angolan crude, which also heads to Europe without having to pass through the Suez Canal, is seeing higher demand from China and India due to issues around Iranian and Russian crude, a trader said earlier this week.

Angola’s March programme emerged earlier this week, although the country’s state oil giant Sonangol is yet to disclose its term allocations, a trader said on Friday.
Source: Reuters (Reporting by Natalie Grover in London; Editing by Tasim Zahid)