Nigerian crude values for April 2014 are beginning to rise steadily on higher refining margins and healthy demand from Europe.

Spot trade in Nigerian cargoes has increased with some high offers and deals done for cargoes in the April loading program.

Refining margins in Europe and Asia have both increased significantly compared with last month due to higher cracks for fuel oil and middle distillates, and this has boosted values for Nigerian light sweets.

Sources said Qua Iboe was offered at Dated Brent plus $3.10 per barrel with a trade done close to Dated Brent plus $3 per barrel. This is compared to last month when the last few March Qua Iboe trades were done near to Dated Brent plus $2.20-2.50 per barrel.

Bonga was offered at Dated Brent plus $3.60 per barrel, Forcados at Dated Brent plus $4.10 per barrel and Akpo at Dated Brent plus $1.40 per barrel.

There has been some strong demand from refiners in Northwest Europe and Mediterranean with a couple of Qua Iboe stems traded recently.

Sources also said that another reason for a bullish market and increased interest from Europe was because quite a sizeable amount of cargoes had been covered by Indian tenders.

International Oil Companies had already bought almost 9 million barrels of West African crude for April loading so far, more than half of which was from Nigeria, and this was supporting Nigerian crude values.