A surplus of Nigerian crude weighed on the international oil market on Tuesday with lower demand from China than in the past couple of weeks.
Nigeria consented to slash daily production by 400,000 barrels after OPEC and its allies struck a deal to reduce global production by 9.7 million barrels per day as a measure for battling the saturation in the market.
“It’s a buyer’s market right now,” a trader told Reuters, noting that nothing was changing.
Nigeria’s unsold cargoes for April and May came to 60 even though its oil grades – Bonny Light and Qua Iboe – were offered at about $3 below Brent, the international benchmark for the country’s crude.
Last month, the state-owned Nigerian National Petroleum Corporation discounted the April official selling for Bonny Light and Qua Iboe by $5 and 3.29 per barrel respectively against Brent.