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Weak Asian Oil Demand Threatens Nigeria’s Crude Export

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Nigeria will export about 1.83 million bpd of crude oil in October, down from 1.94 million bpd exported in September, a drop of about 6 per cent over a period of one month, export data LEADERSHIP sourced from Platt Energy Markets, an international news agency, have shown.

By current loading schedules, traders said some Angolan crude grades have been cleared for October loading, while Nigerian cargo appeared to be finding buyers more slowly.

Nigeria’s Qua Iboe offers to be at dated Brent plus $2.00, unchanged. A trader said cargoes were likely to be sold at dated Brent plus $1 to plus $1.50.

About four Qua cargoes loading in October have traded, leaving as many as eight still looking for buyers.

However, Brazil emerged the largest buyer of Nigeria’s crude oil, overtaking India that occupied the position in the first quarter of this year.

The development followed the dumping of the nation’s crude by United States owing to the discovery of Shale gas.

Figures from the Nigerian National Petroleum Corporation (NNPC) recently showed that Brazil had so far spent $990.09 million (N158.414 billion) on Nigerian crude oil.

The report showed that Brazil bought 9.442 million barrels of crude oil from Nigeria in the first quarter of this year.

Experts believed that Brazil’s increased demand for Nigeria’s crude, may be partly due to the hosting of football World Cup 2014.

India was expected to have purchased about 8.56 million barrels of crude oil from Nigeria, estimated at $897.71 million, (N143.633 billion), using a crude price index of $104.86 per barrel.

The Netherlands spent $825.56 million, (N7.873 billion) on the purchase of 7.873 million barrels of crude oil from Nigeria; followed by Spain with the purchase of 6.638 million barrels of crude oil, estimated at $696.061 million (about N111.37 billion).

France purchased 4.015 million barrels of Nigeria’s crude; United Stated of America imported 3.892 million barrels, while Indonesia purchased 3.89 million barrels of crude oil from Nigeria.

Other consumers of Nigeria crude oil are, South Africa, 2.897 million barrels of crude oil; Germany, 1.985 million barrels; and Cote D’Ivoire, 1.62 million barrels of crude oil from Nigeria.

Europe was the highest buyer of Nigeria’s crude, with the importation of 26.57 million barrels; Asia and the Far East followed with the purchase of 15.3 million barrels of Nigeria’s crude oil; while South America imported 10.39 million barrels of crude oil from Nigeria.

Other African countries purchased 4.454 million barrels of crude from Nigeria; North America and Oceania/Pacific countries purchased 3.89 million barrels and 961,105 barrels respectively of Nigeria’s crude.

The reduction in US demand for Nigerian crude follows its discovery of shale gas technology, a development that has seen the country, which before now was Nigeria’s highest crude importer, reduce its demand to about 250,000 barrels per day, earlier in the year.

The situation forced Nigeria to seek new market for its oil, and consequently, the NNPC disclosed that India had replaced the US as Nigeria’s leading importer of crude followed by China and Malaysia.

According to the NNPC, India now purchases about 30 per cent of Nigeria’s crude which currently hovers around 2.5 million bpd.

The NNPC coordinator, corporate planning and strategy, Dr. Tim Okon, who made the disclosure in June, this year, while speaking at the 21st world Petroleum congress in Moscow, Russia, assured that Nigeria would not ignore any market in its quest to remain competitive in the global oil and gas market.

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