Nigeria's foremost Online Energy News Platform

UK slashes import of Nigerian oil by 60%

The United States cut its imports of Nigerian unrefined petroleum by 60.37 percent to 1.93 million barrels in January this year, contrasted with the 4.87 million barrels purchased around the same time in 2019. 

Most recent information from the US Energy Information Administration indicated that the nation imported 4.85 million barrels of unrefined from Nigeria in December 2019, down from 6.33 million barrels in the earlier month. 

The US has altogether diminished imports of Nigerian unrefined petroleum in the previous barely any years as the oil delivered in its shale activities is like the light sweet Nigerian rough. 

Following the coronavirus-actuated accident in oil costs and request, Nigeria has been battling to sell its unrefined petroleum cargoes. 

Before the lockdowns and breakdown in unrefined petroleum request brought about by coronavirus emergency, the ascent of US shale oil was at that point demonstrating remarkably trying for Nigeria. Blasting creation from shale definitely slice Nigerian fares to the US — when the goal for around 40 percent to 50 percent of the nation’s cargoes. 

US imports of Nigerian unrefined tumbled from 148.48 million barrels in 2012 to 87.40 million barrels in 2013 on the rear of shale oil blast. 

In 2014, when worldwide oil costs began to tumble from a pinnacle of $115 per barrel, Nigeria saw a further drop in US imports of its unrefined to 21.24 million barrels. 

Without precedent for decades, the US didn’t buy any barrel of Nigerian unrefined in July and August 2014 just as June 2015, as per the EIA information. 

In 2010, the US purchased as much as 358.92 million barrels from Nigeria, yet cut its imports to 280.08 million barrels in 2011. 

The EIA, in its April Short-Term Outlook, anticipated that the US would again turn into a net merchant of unrefined petroleum and oil based commodities in the second from last quarter of 2020 and stay a net shipper in many months through the finish of 2021. 

It stated,

“Fewer barrels are available for export as U.S. crude oil production continues to decline.

“In addition, net exports of petroleum products will be lowest in the third quarter of 2020, when US refinery runs decline in response to lower demand for refined products.

“In September 2019, the United States exported 89,000 barrels per day more crude oil and petroleum products than it imported and became a net exporter of crude oil and petroleum products for the first time since monthly records began in 1973.”

The EIA said the US continued to be a net exporter through February when net exports reached 1.79 million bpd, forecasting that net exports would continue through May 2020.