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Nigeria’s once highly desired, easy-to-refine Nigeria’s sweet crude has become hard to sell, making the country to embark on discounted sales just to get the cargoes off the high seas.
International crude oil traders are said to have shunned the country’s export of sweet crude for the months of May and June 2015, making it difficult for the country to find buyers for the product, of which the country’s 2015 budget was planked on.
International crude oil traders are said to have shunned the country’s export of sweet crude for the months of May and June 2015, making it difficult for the country to find buyers for the product, of which the country’s 2015 budget was planked on.
Asian and European demand for Nigeria and other West African cargoes has been slow so far, due to the availability of cheaper crude oil at the international market.
According to an Organisation of Petroleum Exporting Countries (OPEC) report, Asian countries, which Nigeria turned to when the United States stopped buying Nigeria’s crude oil due to the shale boom, now prefer Angolan grades. Specifically China, which became a large buyer of Nigerian crude oil, has reduced importation due to heavy build-up of its products. The country also now prefers Angola’s crude grades.
According to an Organisation of Petroleum Exporting Countries (OPEC) report, Asian countries, which Nigeria turned to when the United States stopped buying Nigeria’s crude oil due to the shale boom, now prefer Angolan grades. Specifically China, which became a large buyer of Nigerian crude oil, has reduced importation due to heavy build-up of its products. The country also now prefers Angola’s crude grades.
OPEC also said that low European refinery demand amid weak gasoline and naphtha margins has put pressure on West African crudes, most especially, Nigerian light sweet crude.
Early this year, OPEC disclosed in its monthly report that Nigeria’s 35 million barrels of crude oil was stranded at the high sea. A fair share of Nigerian export crude cargoes every month are grappling to attract end-user and refinery demand, and are instead being stored on ships and on storage terminals, idling away.
The bulk of the oversupply in the Atlantic Basin crude market is composed of Nigerian crudes.
Early this year, OPEC disclosed in its monthly report that Nigeria’s 35 million barrels of crude oil was stranded at the high sea. A fair share of Nigerian export crude cargoes every month are grappling to attract end-user and refinery demand, and are instead being stored on ships and on storage terminals, idling away.
The bulk of the oversupply in the Atlantic Basin crude market is composed of Nigerian crudes.
SOURCE: EnergyMix
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