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Nigerian crude oil
grades hovered below two-and-a-half year highs on Wednesday, with
traders adding that the initial rush to buy substitutes for lost Libyan
exports is over. “I think the Libyan shortfall is now fully priced into
Nigerian grades and I see no reason for any upside,” said an oil
trader, with a focus in West Africa. Demand for Nigerian volumes has
been strong because these light, sweet grades are among the best global
substitutes for Libyan exports. Nigerian oil exports are set to fall
slightly to around 2.03 million barrels per day (bpd) in May from a
planned 2.06 million bpd in April. Some discussion was heard at
premiums of up to $1.20 above official selling prices on some grades.
Nigeria raised the official selling price on its benchmark Bonny Light
and Qua Iboe grades to $3.40 a barrel above dated Brent. The Brent
Crude closed yesterday at $115.61 per barrel.