The US increased its imports to 4.3 million barrels in
March, the highest since June 2018, according to Customs data on Refinitiv
Eikon.
US refiners turned to other crude oil sources for the first
time in seven years to boycott supplies from Russia as sanctions for the
Ukraine invasion.
Part of the crude grades the country turned to was North
Sea’s Forties and Nigeria’s Bonny Light.
It would combine crude oil from the North Sea, West Africa
and North Africa with sour crudes from Mexico and Saudi Arabia to meet
refiners’ preferred specifications
Nigeria’s Bonny Light sold for $78 per barrel in March, and
4.3 million barrels were exported to the U.S. bringing total revenue from the
country’s oil export to the world’s largest economy to about N156bn.
The US bought 5.18 million bpd from Nigeria in December
2018, down from 10.03 million bpd in January of the same year.
In 2019, its imports plunged to 539,000 barrels per day in
February from 4.87 million bpd in January.
Nigeria’s Light sweet crude is very similar to the light oil
produced in US shale.
The increase in US shale production caused the country’s
appetite for Nigerian crude to drop significantly.
In 2019, its imports plunged to 539,000 barrels per day in
February from 4.87 million bpd in January.
Nigeria’s Light sweet crude is very similar to the light oil
produced in US shale.
The increase in US shale production caused the country’s
appetite for Nigerian crude to drop significantly.
Nigeria used to be one of the major crude oil suppliers to
the US; however, Canada took over the position with its increased oil sand
production.
The Chief Executive Officer of Centre for the Promotion of
Private Enterprise, and the immediate past Director General of the Lagos
Chamber of Commerce and Industry, Dr Muda Yusuf told The PUNCH that Nigeria’s
failure to meet its OPEC quota and the continued importation of refined
petroleum products had robbed the country of the gains of the increased exports
to the US
“This is good news for Nigeria. Although Nigeria has been
unable to meet its production quota from OPEC and then we still import petrol,
otherwise, oil-producing countries are currently smiling to the bank,” he said.
He advised Nigeria to make the most of the current increase
in revenue, caused by the Russia-Ukraine war.
“What the increase in importation from the US means is that
Nigeria will now have more inflow of foreign exchange, more revenue and closer
friendship ties with the country. The best thing is for us to take advantage of
the current increase in revenue,” he added.
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