OREANDA-NEWS. February 06, 2015. Premiums for West African crude oil were firmer on Thursday, rebounding from multi-year lows, as strong refining margins and tenders in Asia promised to absorb some of the surplus.

Firm differentials for light sweet grades in the North Sea and the Mediterranean also made African grades more attractive, though roughly 40 percent of March-loading Nigerian cargoes are still on offer.

"West Africa offers have been higher for a few days but a lot is on hold for tenders," one trader said.

Sellers who bid to supply the tenders generally have to wait for the results before making other deals with their crude cargoes.

Strong refining margins in Europe are also a boon for sellers of West African crude, as the region has been a key outlet since the US shale oil boom largely shut West African imports.

A pirate attack that killed a crew member on a VLCC heading toward the Qua Iboe terminal did little to stem demand for the country's crude oil, as traders and insurance experts said the risks are already priced into shipping costs.

"Unfortunately, it's par for the course down there," one trader said.

But any change to official selling prices from the Middle East could dent demand for African crude among key Asian buyers.

Top oil exporter Saudi Arabia is expected to cut March prices for the crude it sells to Asia, with traders anticipating cuts from \\\$1 to \\\$2 per barrel in official selling prices.