‎Despite glut of products, Nigeria’s oil export levels to remain stable

*Crude oil prices.

*Crude oil prices.

Oscarline Onwuemenyi,
with agency reports

30 October 2015, Sweetcrude, Abuja – The total exports of Nigerian crude oil are expected to remain largely stable in December, putting more downward pressure on prices as the fight for buyers intensified among producers of light sweet crudes.

Provisional loading programmes show that Nigeria’s export plan for December includes a total of at least 56.29 million barrels of oil, or 1.82 million barrels per day (bpd), according to provisional loading programmes.

That compared with November’s export plan of 56.66 million barrels of oil, or 1.89 million bpd. But traders said more cargoes were likely to be added, with a possible total of nine Forcados cargoes.

“Forcados is looking pretty long,” one trader said. “West African (crude) is beginning to look pretty shaky.”

Cargoes from the November programme are still struggling to clear despite the fact that the loading plan was the lowest on barrel-per-day basis since July, with 10-15 million barrels still seeking a home.

At the same time, pressured margins for oil products in northwest Europe and quickly filling storage tanks, are expected to lead some refineries to cut production in the coming weeks, curtailing the amount of crude oil they will purchase.

Recent reports indicate that surplus cargoes of Nigerian crude oil were slow to clear on the international market, even as Chinese buying helped Angola to fare better, traders said.

About 19 million barrels of November loading Nigerian oil are struggling to find buyers as Asian refiners start looking further ahead and Europe turned to the closer, and increasingly cheap, North Sea and Mediterranean grades.

According to one trader, “The outlook for Nigeria is not fantastic. Demand has slowed down massively.”

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