[ACCI-CAVIE] Despite a recent dip in oil futures prices due to geopolitical tensions, West African crude grades from Nigeria and Angola have maintained steady price differentials against Dated Brent.

This resilience can be attributed to several factors:

• Strong Demand: Robust demand for West African crude has helped stabilize prices, even in the face of global market volatility.
• Strategic Pricing: Nigerian and Angolan oil producers have employed strategic pricing tactics to optimize revenue and maintain market competitiveness.
• Stable Physical Supply: While global oil futures have experienced fluctuations, physical supply from West Africa has remained relatively stable.

However, the market dynamics are evolving. The widening Brent/Dubai EFS spread has led to reduced demand from Asian importers for West African crude. To counter this, Nigerian and Angolan exporters have adjusted their pricing strategies. For instance, Nigerian grades like Bonny Light and Qua Iboe are being offered at higher price ranges, while Angolan grades like Gindungo and Olombendo are being offered at discounts to attract buyers.

This shift in pricing strategies suggests that West African producers are adapting to changing market conditions and seeking to maintain their market share. While the outlook for West African crude remains positive, it is essential to monitor global oil market trends and geopolitical developments that could impact future demand and pricing.

The editorial team (with Finimize)