27 May 2014, Lagos – Following a steep decline in United States’ demand for Nigeria’s crude, India, Netherlands and Spain have emerged as the highest buyers of the nation’s crude oil, accounting for 45.01 per cent of its total crude export in January.
Specifically, data obtained from the Nigerian National Petroleum Corporation, NNPC, revealed that India was the highest recipient of Nigeria’s crude oil in January, accounting for 18.09 per cent of total crude export with 11.811 million barrels of crude oil.
The Netherlands followed with the purchase of 8.889 million barrels of crude, while Spain received 8.695 million barrels.
In general, Nigeria’s total crude export appreciated slightly by 1.19 per cent to 65.305 million barrels in the month under review, up from 64.537 million barrels in December 2013.
Europe was the major importer of majority of Nigeria’s crude during the review period with 34.377 barrels of crude, representing 52.64 per cent of its total crude export.
Asia and the Far East followed with the purchase of 15.67 million barrels, representing 23.99 per cent of the total crude export.
Nigeria’s crude export to other African countries stood at 6.509 million barrels, while South America purchased 5.903 million barrels of crude.
Further analysis of Nigeria’s crude oil export by destination revealed that France trailed India, Netherlands and Spain, receiving 6.561 million barrels of oil, while Brazil received 5.903 million barrels.
Others are Italy — 5.06 million barrels; South Africa — 2.9 million barrels; China —1.956 million barrels; Sweden — 1.948 million barrels and United States of America — 1.871 million barrels.
Impact of shale
In December 2013, the negative effect of shale exploration in the United States of America, USA, and other parts of the world, was brought to the fore, as Nigeria’s crude oil export to North America dropped by 91.31 per cent in one year.Specifically, the NNPC disclosed that Nigeria exported 1.438 million barrels of crude oil to North America in December, down by 15.111 million barrels in December 2012.North America accounted for 22.19 per cent of Nigeria’s total crude export by December 2012, but it dropped to 2.23 per cent by December 2013.Prior to the decline, the US was the highest buyer of Nigeria’s crude, purchasing 14.279 million barrels in December 2012, thereby, accounting for 19.15 per cent of its total crude export and 86.28 per cent of total crude export to North America.
But by 2013 end, the US dropped to the 10th highest importer of Nigeria’s crude, with 1.438 million barrels. The NNPC report also indicated that by December 2013, Europe was the highest importer of Nigeria’s crude, accounting for 47 per cent of Nigeria’s total export; followed by Asia and Far East, accounting for 26 per cent; while Africa accounted for 12 per cent of the total crude export.
South America accounted for 10 per cent while the Oceania/Pacific and North America accounted for three per cent and two per cent respectively. India emerged the highest importer of Nigeria’s crude in December 2013, with 13.086 million barrels, followed by the Netherlands with 9.866 million barrels, and France 4.497 million barrels.
*Michael Eboh – Vanguard