DEMAND FOR 91 RON unleaded gasoline from Europe into the Nigerian market has slowed to a near halt with a well supplied market and large backlog of cargoes remaining off the coast of Lagos.
p>DEMAND FOR 91 RON unleaded gasoline from Europe into the Nigerian market has slowed to a near halt with a well supplied market and large backlog of cargoes remaining off the coast of Lagos.
"There is a huge backlog of ships and delays in discharge," a trader said.
The Nigerian market typically draws barrels from Northern Europe and the Mediterranean, both of which are currently structurally long. A wider spread between gasoline and naphtha has led to better blending economics and it being cheaper to blend 91 RON material. However there is little demand for this material.
"There are a lot of cargoes down there, demand is weak," said the trader.
The country is entering the rainy season which is expected to lead to a further slump in local demand. Offers for 91 RON material which typically prices as a differential to premium unleaded barges in ARA have fallen recently.
