US import of Nigerian crude hits record low

0

The United States’ import of crude oil from Nigeria has fallen to a three-year low amid growing shale oil production in the North American country.
The US slashed its import of Nigerian crude to 904,000 barrels and 1.74 million barrels in July and August respectively, down from 7.77 million barrels in June and a peak of 10.33 million barrels in February this year.
The US purchased a total of 45.79 million barrels of Nigerian crude in the first half of this year, down from 55.78 million barrels in the same period last year, according to latest data obtained by our correspondent from the US Energy Information Administration on Friday.
Trade in Nigerian crude remained subdued on Thursday as a high volume of unsold cargoes kept buyers reluctant to step in, according to Reuters.
In the Nigerian market, traders estimated that nearly a quarter of the December programme remained available.
Offers for Nigerian Qua Iboe and Bonny Light, two of the nation’s grades, hovered around $1.65 a barrel above dated Brent, down from $1.70 earlier last week.
Last Monday, the Department of Petroleum Resources said Nigeria had lost its most valued crude oil buyers.
The Director, DPR, Mr Mordecai Ladan, said the oil and gas industry seemed to be under a new threat, which he described as the renewed dislike and global war against fossil fuels and the quest for renewable and cleaner energy.
“As sweet as Nigeria’s crudes are renowned to be globally, we have recently lost our most-valued customers and our gas buyers are themselves now competing with us in the same market space as suppliers,” he added.
It was reported in September that the US Atlantic Coast imports of West African crude oil were expected to decline due to harsh arbitrage conditions made difficult by the large premium of ICE Brent futures over West Texas Intermediate, as well as strong premiums for WAF grades.
According to S&P Global Platts, Traders tracking these grades exported in the US expected WAF imports to the USAC to fall to virtually zero.