West African Crude Oil Differentials Steady Amid Demand Concerns

West African crude oil differentials have remained steady despite concerns over demand. The price increases linked to Middle East supply disruptions and higher freight costs have affected buyer interest.

Nigerian crude grades, including Bonga and Forcados, are currently valued at approximately plus $6 to dated. 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. The rates have declined slightly since then.

In related news, Uganda has named its blended crude oil grade Pearl Sweet and plans to begin commercial oil production by the end of this year.