Tuesday, 15 September 2015

U.S resumes importation of Nigeria’s Crude Oil


Trading sources over the weekend have disclosed that a few oil vessels will be heading to U.S refineries from Nigeria, signaling resumption of importation from Nigeria.

Two Nigerian grades, including at least two cargoes of flagship crude Qua Iboe as well as Bonga, were said to be heading to US east coast refineries as well potentially down to the US Gulf Coast, traders said.

“It is bits and pieces, not massive flows,” one crude trader told US-based energy publication, Platts.

Exports of Nigeria’s major crude grade, began plunging rapidly from July 2014 to zero level by the end of 2014 as a result of increased shale oil production by the US.

India and Europe have emerged as the largest markets for Nigerian crude, while the OPEC member still struggles to dispose of its oil to the US leading to a growing overhang of unsold Nigerian cargoes but there seems to be changing fortunes for the country’s crude.

One cargo of Nigerian crude is heading over regularly to the Delta Airlines refinery in Trainer, Pennsylvania, while Philadelphia Energy Solutions (PES) was also heard to have bought Nigerian crude, including an end-September loading cargo of Bonga and, potentially, a cargo of Qua Iboe.

Shipping fixtures seen by Platts showed PES, Exxon and Statoil chartering vessels to take West African barrels to the US for end-September loading cargoes, and traders have said Vitol’s October 3-4 loading Qua Iboe cargo was also heading to the US.

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