Nigerian differentials were steady on Friday, having risen dramatically in recent weeks.
Premiums for diesel-rich medium-sweet grades such as Bonga, Escravos and Forcados hit their highest levels earlier this week since August 2022, after the Russian invasion of Ukraine in February 2022 sent crude prices soaring, according to LSEG data.
Russia, the world’s top seaborne diesel exporter, imposed a ban on fuel exports in late September. However, on Friday, Moscow lifted the ban on pipeline diesel exports via ports, removing the bulk of restrictions.
Oil markets are also tight as Saudi Arabia and Russia have curbed output by an additional 1.3. million barrels per day (bpd) in addition to agreed OPEC+ cuts.
Should Russian diesel filter back into global supplies, medium-sweet grade premiums will likely fall.
Source: Reuters (Reporting by Natalie Grover in London; Editing by Louise Heavens)