03 September 2015, Lagos – Crude oil exports to Asia from Nigeria and other West African countries are set to fall to 1.68 million barrels per day in September, their lowest since August 2014, according to shipping data and a survey provided by traders on Wednesday.
Angola, Nigeria and neighbouring countries are expected to export about 28 cargoes to China in September and 15 to India, down from 30 and 25 respectively last month.
Crude flows to Asia have fallen from 2.34 million bpd in April due to seasonal refinery maintenance and lower refining margins as well as fears of weakening demand growth.
India’s Essar Oil is set to shut its 400,000 bpd Vadinar refinery from mid September for a month.
Also limiting purchases by the sub-continent, Indian refiners are becoming more selective in the grades of oil that they are looking to purchase, making it tougher for sellers of Nigerian crude to sell to the region.
And while exports to China have held up relatively well, many cargoes heading to China are expected to go into storage, according to predictions by Reuters. Chinese refiners are cutting output in the face of low margins.
Chinese imports in October are likely to fall further as purchases of Angolan oil have been substantially slower than in recent months, traders said.
For the month of September 2015, Nigeria and other West African countries will be exporting 28 cargoes of crude to China, 15 cargoes to India, five cargoes to Indonesia, two cargoes to Taiwan, zero cargo to Japan, zero to South Korea, and three to other Asian countries. A total of 53 cargo exports are expected.
But in August 2015, 30 cargoes of crude were exported to China from the West African region, 25 cargoes to India, three cargoes to Indonesia, two cargoes to Taiwan, zero cargo to Japan, zero cargo to South Korea, and zero cargo to other Asian countries. A total of 60 cargoes of crude were shipped to the Asian countries from the West African region last month.
Therefore, on this note and falling oil prices, President Muhammadu Buhari had, on Tuesday, warned that Nigeria risked economic decline, if it failed to manage its resources prudently.
At a meeting with members of the Institute of Chartered Accountants of Nigeria at the Presidential Villa, Abuja, the President urged accountants to take their audit reports seriously.
He urged them to support his administration’s efforts to restore probity, prudence and transparency.
Buhari said with declining prices of oil exports, Nigeria must begin to properly manage its available resources or face developmental stagnation and decline.
The President stated that accountants should help the government “to go back to the days of real accountability in the management of public funds.