North Sea and WAF arbitrage opportunities to Asia are very poor due to higher oil prices, a narrowed WT-Brent spread, and a widening Brent-Dubai EFS, Sparta Commodities said.

• Some complex margins for WAF in the Far East are negative on an outright basis, partly due to weak gasoil markets, Sparta said.
• Consequently, these barrels are now pointing to alternate destinations like the USGC and US Atlantic Coast.
• Despite expectations of a ramp-up in Nigeria’s Dangote refinery, WAF crude cargoes appear ample in May while April has been struggling to clear.
• Differentials may need to ease further, putting pressure on NWE, before refinery demand gets stronger after peak maintenance season.