Nigeria’s Usan Crude Secures First Export Deal for August

Nigeria’s Usan crude grade is set for a major export in August after it secured its first-ever trade in the Platts Market on Close (MOC) process. The deal covers a one million-barrel cargo and gives the crude grade a new place in international oil trading.

The cargo will load from the Usan Floating Production Storage and Offloading (FPSO) vessel on August 18 and 19. CNOOC UK offered the shipment, while Vitol bought it after both firms agreed on the final price.

This is the first time Usan crude has completed a trade through the Platts MOC process. The development comes months after an earlier offer by ExxonMobil failed to attract a buyer and was withdrawn before the trading session ended.

CNOOC UK first placed the cargo at a discount of $3.05 per barrel to Dated Brent. The final deal closed at a discount of $4.50 per barrel after further price talks.

The successful sale means Nigeria's Usan crude has now joined other oil grades that trade through the Platts pricing system used by many international buyers and sellers.

Buyers return to West African market

The June 22 to June 25 trading sessions recorded ten cargo offers from producers in Nigeria, Angola and Congo. Five of those offers ended in completed sales.

The offers included Nigeria's Usan and Escravos grades, Angola's Dalia, Pazflor, Nemba and Cabinda grades, as well as Congo's Djeno crude.

Vitol bought two cargoes during the trading period, while SOCAR, Glencore and BP each secured one shipment. Another completed deal saw BP buy a 950,000-barrel cargo of Angola's Dalia crude from Sinochem for August loading.

Equinor and ENI each placed three offers during the trading sessions. Chevron, TotalEnergies, Sinochem and CNOOC UK each presented one cargo for sale.

Oil traders are still facing weak demand from buyers in the East. This has forced sellers to lower prices to attract interest. The August trading cycle started with lower price differences for several West African crude grades, making them more competitive in the international market.

The successful Usan trade gives Nigeria an export opportunity at a time when oil producers are working to secure more buyers despite the soft market.