India, China buy more Nigerian crude as oil loading schedule shows Nigerian exports to increase

Posted on : Tuesday , 7th October 2014

The continued decline of United States’ imports of Nigerian crude oil in recent years has led to more Asian countries particularly India and China accommodating the backed-out barrels from Nigeria reports The Punch.

China, India, Japan and South Korea, Asia’s four largest oil consumers, have collectively bought around 42 per cent more Nigerian crude so far this year in comparison with 2013, according to an analysis of import data monitored by Platts.

US imports of Nigerian crude tumbled to an average 73,000 barrels per day in the first seven months of 2014, according to data from the US Energy Information Administration, compared with a full-year 2013 average of 239,000 bpd – a decline of nearly 70 per cent.

In July, US imports from the country fell to zero for the first time on record, down from 89,000 barrels per day in June, data from EIA showed.

India, which replaced the US as the single largest importer of crude oil from Nigeria last year, dominates the Nigerian market, and has ramped up its intake of crudes from the country.

India ratcheted up its imports of Nigerian grades over January-August 2014 by 37 per cent from a year ago to an average of just under 367,000 bpd, according to data from ship brokers compiled by Platts.

The predominant buyers are seen to be the state-owned refiners Indian Oil Corporation and Bharat Petroleum Corporation Limited, with Qua Iboe and Bonny Light the grades of choice, according to data compiled by Platts from shipping fixtures.

Chinese imports of Nigerian crude jumped 105 per cent year on year to around 41,000 bpd over January-August, according to Chinese customs data.

There are also strong indications that Nigeria’s oil export will improve significantly despite difficult challenges ranging from unbearable oil theft, community unrest and vandalisation of oil facilities according to Leadership.

The export figure is believed to soar to a 14 -month high of 1.91 million barrels per day (bpd) in November.

According to Reuters, this would be Nigeria’s highest level since September 2013, and was higher than the upwardly revised figure of 1.86 million bpd due to be exported this October.

Reportedly, oil theft, illegal bunkering and vandalism of oil facilities have combined to impact negatively on oil production in Nigeria, prompting actions on the part of the federal government and the Nigerian National Petroleum Corporation (NNPC) towards protecting oil facilities and ensuring increased production.

Higher exports of the Bonny Light grade which had been beset by oil theft, outweighed a dip in the level of Qua Iboe in Akwa Ibom State and Forcados exports.