Nigeria’s May Crude Oil Sales Begin to Recover Amidst European Demand Dip


After a sluggish start due to reduced interest from Europe, Nigeria’s crude oil sales for May loading are displaying signs of improvement. Around 10 cargoes of crude remain available for purchase this month, accounting for approximately a fifth of Nigeria’s total exports for May. However, experts anticipate a surge in deals in the coming week as offer prices have moderated, making transactions more enticing.

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The delay in sales reflects broader challenges in the Atlantic Basin’s crude market, with an influx of US oil exports putting pressure on prices of refinery feedstocks across Europe and West Africa. Additionally, European refineries are emerging from routine seasonal maintenance, further dampening demand. This trend has also impacted rival suppliers like Azeri Light and West Texas Intermediate, whose prices have softened.

James Davis, director of short-term oil market research at FGE, noted, “We’ve got much weaker margins so crude demand is taking a hit.” Nigeria’s lag in sales can also be attributed to sellers initially seeking premiums over the Dated Brent benchmark, which European refiners found unviable.

However, recent adjustments in offer prices have spurred activity, with some Nigerian grades being competitively priced, particularly to Asian and Mediterranean markets. As a result, the backlog of unsold cargoes is gradually diminishing.

Looking ahead, approximately 30 shipments of Nigerian oil for June loading are still available for sale, while July’s supplies are set to enter the market later this month. In contrast, Angola’s crude sales to China have remained steady, with fewer than 10 shipments for June loading awaiting buyers out of 37 scheduled. Angola’s medium-to-heavy sweet crude variety continues to appeal to Chinese refiners, sustaining demand despite market fluctuations.

Recent transactions include China’s Unipec purchasing three shipments of Angolan crude for June loading, along with Rongsheng Petrochemical securing Angolan supply for July arrival.

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Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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