Nigeria’s crude oil export slides

Crude Oil

Crude Oil

There are indications that Nigeria’s crude oil exports may fall by about 10 per cent in November, as loading were assessed to be on the lower scale.

Indeed, loading programmes continued to emerge on Monday, with exports on track to fall from October’s high.

The provisional loading programmes showed that Nigeria plans to export a total of 56.66 million barrels of oil, or 1.89 million barrels per day (bpd) of crude oil in November, which is a decline from the 63.1 million barrels, or 2.04 million bpd, planned initially for October loading.

On a per-day basis, the November programme is on track to be the lowest since July, according to available data.

Traders said the November loading programme was on track to show a decline from the yearly high hit in October, but trading was limited as the market processed the new offers.

Few trades surfaced as the market picked through Angola’s November offerings, which emerged last week. Tenders from Indian refiners were also expected to keep a lid on spot trading as players waited for the outcome before making other deals. Despite this, October sales have fared better than expected, with the bulk of Nigeria’s oil finding a home in either Europe or in the Americas.

“It’s mostly for refinery runs in Europe, which is odd given it’s maintenance season,” a trader said.

According to reports, Qua Iboe loadings were lower, though ExxonMobil added one cargo late in the day bringing the total to 11 cargoes, or 338,000 bpd, compared with the previous month’s 368,000 bpd.

With several smaller programmes still pending, reports showed that a total of 1.82 million bpd on 59 cargoes is on track to be lower than the 2.1 million bpd on 70 cargoes initially planned for October.

There were at least 10 cargoes of Nigerian crude for October loading available, a relatively low number given the large October export programme.

The tenders are still rolling in, as traders said India’s IOC issued another tender for November 5-20 loading. “In its last tender, it bought Bonny, Pazflor and Agbami from Shell and another unknown cargo from Shell via a tender on Thursday”.

Besides, fellow Indian refiner BPCL also had a tender pending to buy West African crudes for November loading. Some of the tender could take late October loading

Meanwhile, Ecuador’s government has unveiled plans to begin negotiation with the Nigerian National Petroleum Corporation (NNPC) over a potential investment to buy 100,000 barrels of light sweet crude from Nigeria.

President of Power-Tech Engineers which provides engineering services for Ecuador’s refinery and Latin America, Victor M. Rojas, was reportedly said, the country is looking at a potential tender for as much as 100,000 barrels of low sulfur crude oil to be delivered in a one-year period and would like to transact the business directly with the NNPC.

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