…as Europe to buy less of Nigerian crude
crude oil
One of Nigeria’s crude grade, Forcados is set to experience a peak in export in November, the highest in one year.
A report by Reuters said export for Forcados will hit about 320, 000 barrels per day in the month under review.
Shell had lifted a force majeure on Forcados export mid-April after a one-week shutdown of the Forcados Terminal, one of the largest in the country.
Meanwhile, the report which quoted unidentified trading sources, said Nigerian grades are currently facing competition from a rise in Libyan output.
“Traders said that with refinery capacity sharply falling, especially in Europe, there would be even less of an appetite for crude from Nigeria”.
The lack of interest also applies to Libya as it restarts exports, but some of the few European customers who had been absorbing Nigerian volumes in recent months have term obligations to take on Libyan crude, according to the report.
The development comes as sale prices for light, sweet Nigerian Bonny Light and Qua Iboe crude continued to push near dated Brent minus 50 cents.
Crude export sales continue to grow slowly as the world recovers from slowdown caused by the COVID-19 pandemic.
Nigeria being an oil-dependent economy- its revenue capacity has slowed with most of its 2020 capital projects pending as the country resorts to borrowing.
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