Buyers shun Nigerian oil, opt for another African country’s crude as over 30 cargoes remain unsold

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.

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.

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.