Buyers Shun Nigerian Oil, Opt For Another African Country’s Crude as Over 30 Cargoes Remain Unsold

• About 30 crude oil consignments from Nigeria reportedly remain unsold in the international markets
• A recent report says that the consignments have been slow in finding buyers, with 53 cargoes scheduled for sale in May
• The development comes as Nigeria’s Minister of Petroleum Resources (Oil) Lokpobiri said crude supply has been affected by pipeline challenges

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment, and the economy for over a decade.

Nigeria’s crude oil for May loading has been sluggish in finding buyers, with over half of the scheduled cargoes yet to clear.

A report by Bloomberg on Friday, April 12, 2024, said that more than 30 of the country’s cargoes are still seeking buyers.

About 53 cargoes stranded in the sea

The report quoted traders specializing in buying West African crude oil, saying that about 53 cargoes are scheduled to load in May 2024, with most consignments being about one million barrels.

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Nigeria’s crude oil can be traded openly in Asia, Europe, or even the US, making the sales progress a closely watched market detail.

According to the Bloomberg report, heavy refinery maintenance in Europe has affected demand for Nigerian oil, creating an excess barrel in April going into the May trading cycle.

Rival producers in the Mediterranean have also cut into Nigeria’s market share.

Nigeria’s sales have also battled high freight costs and premium prices for more supplies.

Buyers go for Angolan oil

However, sales in Angola’s May-loading crude have been steady, with only five or six 34 planned shipments available.

Angola’s crude benefited from a robust demand from Asian buyers like China and India.

The International Energy Agency (IEA) also mentioned strong demand for Angolan barrels in India in its monthly report.

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Another African country overtakes Nigeria as top oil producer

FG reveals the reason for low oil output

Nigeria’s Petroleum Minister for Oil, Heineken Lokpobiri, attributed Nigeria’s low crude oil production in Q1 2024 to issues with the Trans-Niger pipeline and maintenance activities by some oil firms.

Lokpobiri said in a statement that the issues had been resolved, and Nigeria would begin pumping about 1.7 million barrels of oil daily.

He stated that the Nigerian government is currently working on plans to maximize the use of all available wells across the country to generate revenue, meet budgetary expenses, and stabilize the forex market.

Another African country overtakes Nigeria as top oil producer

Legit.ng reported that according to data from the Organisation of Petroleum Exporting Countries (OPEC), Libya overtook Nigeria as the top African oil producer in March.

The April 2024 Monthly Oil Report published by OPEC said the North African country recorded 1.24 million barrels per day of crude oil in March, a 5.7% increase from the 1.17mbpd recorded in February.

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But Nigeria recorded an oil output of 1.23mbpd in March compared to the 1.32mbpd produced in February. The March figure represented the lowest rate Nigeria recorded since July 2023.

Source: Legit.ng