Commodities
West African Crude Oil Differentials Remain Steady Amid Demand Concerns
West African crude oil differentials remained unchanged on Wednesday due to recent price increases linked to Middle East supply disruptions and higher freight costs affecting buyer demand. Nigerian crude grades, including Bonga and Forcados, are currently valued at approximately plus $6 to dated Brent.
Some buyers are resisting purchases at this price level. Freight rates on major routes for West African crude reached multi-year highs in August, matching levels seen during the early stages of the U.S.-Israeli war on Iran, according to Riverlake data.
The East African nation of Uganda named its blended crude oil grade Pearl Sweet on Wednesday. The country plans to begin commercial oil production by the end of this year.