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Nairaland Forum / Nairaland / General / Business / Angola Overtakes Nigeria As Top Crude Exporter To U.S. (629 Views)
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Angola Overtakes Nigeria As Top Crude Exporter To U.S. by Folksyharry(m): 12:30pm On Sep 12, 2014 |
INDICATIONS have emerged that the crash in crude oil imports by the United States (U.S.) has begun to favour Angola more than Nigeria, which had maintained its major import market before the advent of Shale oil. Specifically, recent data by the Energy Information Administration (EIA) showed that Angolan deliveries to the U.S. have averaged around 116,000 barrels per day (bpd) recently, compared with just 75,000 bpd for Nigeria crude. It has however, been established that overall crude import by the U.S. has dropped significantly since the discovery of oil, which was dexcribed as a game change to the global crude market. Reports showed that yearly imports of Angolan surpassed imports of Nigerian crudes for the first time in 41 years. As the tight oil boom continues to reduce US imports of West African crude, heavier Angolan grades have proved more resilient than their lighter regional counterparts, according to the EIA data. Sources adduced the main reasons for the increase in Angolan imports and decrease in Nigerian shipments to the comparative ease of blending Angolan grades with shale crude, as well as demand for heavy refined products and feed stocks, which favors Angolan crudes. Earlier data showed that Angolan exports to the U.S. down 59 per per cent from a peak of 534,378 barrels per day (bpd) in 2006, while Nigerian exports fell 75 per cent over the same period. For six consecutive weeks between June 27 and August 8, the U.S. imported no crude from Nigeria, the longest period that the U.S. has gone without imports from the country. The arbitrage of crude oil from West Africa to the US Gulf Coast and the US East Coast has historically been one of the major trade routes in the global oil market. However, imported volumes have been dropping steadily since at least 2011, as domestic US crude production has soared, displacing arbitrage barrels from Nigeria and Angola. Angolan crude has proven far more appealing to US refiners, as it is mostly of a heavy, sweet variety. Its low specific gravity makes it denser, and it also has a low sulfur content. Heavy sweet crudes are used to blend with the light sweet shale crude and this has encouraged a preference for Angolan crudes by US refiners. Meanwhile, Business Monitor International (BMI), believed that Nigeria and Angola would continue to struggle to find markets for crude oil. “West African crude oil sales continue to struggle to find markets as European and Asian demand remains weak. Both Nigeria and Angola will have to increase discounts on their key benchmark crudes to maintain global market share. “We have already indicated the impact of reduced demand for light-sweet crude from the US, due to the sharp increase in production from shale, and noted West African countries’ efforts to diversify oil exports to Asia. “Nigeria and in particular Angola found some respite by increasing sales to China, however, this may have just been a temporary solution, with the West African region acting as a buffer to cover for global outages,” it stated. Nigeria had to reduce its crude price for July by $.015 per barrel to prompt demand increases; Angola is now likely to follow suit with around 30 per cent of its August cargoes unsold, according to Platts. http://www.ngrguardiannews.com/business/energy-report/178374-angola-overtakes-nigeria-as-top-crude-exporter-to-u-s |
Re: Angola Overtakes Nigeria As Top Crude Exporter To U.S. by makazona(m): 1:11pm On Sep 12, 2014 |
Overtaking is allowed afterall Nigerian foreign policy is not favouring US too much agn |
Re: Angola Overtakes Nigeria As Top Crude Exporter To U.S. by makazona(m): 1:12pm On Sep 12, 2014 |
Overtaking is allowed afterall Nigeria's foreign policy is not favouring US too much agn |
Re: Angola Overtakes Nigeria As Top Crude Exporter To U.S. by tonjeola(m): 2:26pm On Sep 12, 2014 |
Overtaking is allowed when you lack the skill to improve |
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