West African crude differentials were largely steady on Friday and may weaken amid ample supplies, analysts said, while traders awaited the Nigerian loading programmes for February.

Earlier this week, Forcados was offered at dated Brent plus $2.75, a slight uptick from the plus $2.65 reported last week.

West African grades have also been facing stiff competition from other suppliers, sources told Reuters this week, with high freight rates also weighing on the market.

Analysts at Sparta Commodities said crude differentials could fall further, adding to recent declines, and that the Brent structure could move further into contango.

A deeper contango, which means prices for prompt delivery are cheaper than later supply, is likely and also needed for more West African barrels to move into storage, they added.
Source: Reuters