Brent Oil Holding Above $102 with Asia Absorbing Glut

Brent crude’s biggest price-rout in more than a year is coming to an end as the flow of West African crude to Asia helps disperse a glut, banks including Societe Generale SA (GLE), BNP Paribas SA (BNP) and DNB ASA (DNB) said.

A “price floor is forming” close to $100 a barrel for Brent, used to value more than half the world’s oil, as the surplus of Nigerian supplies is whittled away, Societe Generale said in a report today. The incentive for sending cargoes from the region to buyers in Asia is at its strongest in four years, data from PVM Oil Associates Ltd. show. Chinese and Indian refiners bolstered purchases of West African crude to the highest in at least three years, a Bloomberg News survey of traders indicates.

“We might be around the bottom for this price cycle,” Torbjoern Kjus, an analyst at DNB in Oslo, said by phone today. “Nigerian barrels moving to Asia again, to me that’s the first sign that the market’s starting to re-balance.”


Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at Visit to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.