Nigeria's oil exports are expected to rise in August, according to provisional loading programmes, flooding more crude into an already oversupplied Atlantic Basin. At least 1.83 million barrels per day (bpd) are expected on 61 cargoes, with the full programme for Bonny Light still pending. While provisional plans for July included 1.82 million bpd, traders said at least two of the Bonny Light cargos from that programme will now load in August. Extra cargoes of Brass River and Bonga added to the increase, while cargo of Pennington, which does not export every month, is expected to load in August. While loading delays of up to 10 days have raised questions about Bonny production issues, just one more cargo would put the August export plan at the highest level since January. Exports from earlier this year ranged from five to seven cargoes. "There is plenty of material around...and it is tremendously cheap," one tr-ader said. Around 15 cargoes from Nigeria's July loading programme are still up for sale, and competition with North Sea and Mediterranean barrels has pushed differentials for Bonny Light to six-month lows. This has already enabled some exports to the United States, and analysts said more could follow. "Bonny Light delivered to the U.S. Atlantic Coast is now $8 per barrel cheaper than Bakken," JBC Energy said in a note, adding "even in the U.S. Gulf Coast, the incentive to process Bonny Light versus domestic grades has been improving."
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