India and the United States have slashed their imports of Nigerian crude oil by 43 per cent and 53 per cent, respectively, translating to a loss of at least N88bn in earnings, the latest report from the Nigerian National Petroleum Corporation has shown.

India, which became the single largest buyer of Nigerian crude in 2013 after the US, reduced its imports from Nigeria in May this year as it bought 7.74 million barrels, down from 13.51 million barrels in April; 12.51 million barrels in March and 12.70 million barrels in February.

The Asian country had in January imported 16.29 million barrels of Nigerian crude, its highest monthly level this year, the NNPC data showed.



The US, whose imports of Nigerian crude rose by 577.8 per cent in the first quarter of this year compared to the same period of 2015, reduced its import by 5.77 million barrels in May from 10.13 million barrels in the previous month.

In February, the US bought as much as 12.12 million barrels from Nigeria, making it the second largest buyer of the country’s crude after India.

Using a conservative price of $40 per barrel and N197/$ official exchange rate in May, the decrease of 11.14 million barrels in the two countries’ imports of Nigerian crude amounts to N87.9bn.

Global benchmark, Brent crude, had on May 26 hit $50 for the first time in 2016.

The Editorial Director, European and African Oil, Platts, Joel Hanley, in an interview with our correspondent on the sidelines of the Platts’ Lagos Oil Forum, said India “can go anywhere else to buy if the price is right.”

He, however, said, “Nigeria has priced itself to a level where it has regular buyers in India; obviously, there is investment from India that helps that flow. I will say that it is a buyer’s market. India, China and every other buyer have their pick of the grades these days, and that is why differentials are so low. They can pick and choose whatever they want.

“I think right now in this kind of environment, it is about securing a good relationship and a good, reliable trade flow. Trust is so important. And I think if India and Nigeria can focus on that relationship, there shouldn’t be too much threat to that.

“However, if someone comes in at a cheaper price, then I don’t know how long the Indians will stick around because, they, like everyone else, have money to make.”

Three of Nigerian oil grades, Forcados, Qua Iboe and Brass River – have in the past three months been under force majeure – a legal clause that allows companies to cancel or delay deliveries due to unforeseen circumstances.

The PUNCH had recently reported that a number of India-owned refiners have been actively picking up Malaysian oil cargoes for loading in July and August amid growing uncertainty over the exports of Nigeria’s crude grades, according to regional sweet crude traders.

Following the spate of production disruptions largely caused by the recent surge in militant attacks on oil infrastructure in the Niger Delta that cut the nation’s output to the lowest in almost three decades, exports of the commodity from the country have continued to take a serious beating.

Nigeria relies heavily on earning from oil exports, and the recent production disruptions came as an additional headache for an economy that already suffers from the sharp drop in oil prices since 2014.

Weak demand for Nigerian crude oil has caused the number of ships without cargoes to rise to levels not seen in recent times.

As a result, the cost of sending crude oil cargoes from West Africa to Northwest Europe on Suezmaxes has dropped to the lowest level in over 14 years, Platts data has shown.

The continued force majeure on the three grades has substantially reduced the demand for Suezmaxes in the region in recent months, and caused WAF tonnage list to swell to levels rarely seen by veteran market participants.

Suezmaxes are medium to large-sized ships with a deadweight tonnage between 120,000 and 200,000. They are the largest marine vessels that meet the restrictions of the Suez Canal, and are capable of transiting the canal in a laden condition.

According to one shipbroker’s position list, there were 32 ships available prior to the start of the current fixing window, versus a three-month average of 14.8 ships. There were also 29 ships free of cargo, which could make WAF fixing window.

The number of ships means that each cargo that is shown to multiple owners attracts multiple offers and allows charterers to drive freight rates downwards.

AntiIPOOP:
All hail NDA- Flatheàds

Oya lets suffer it together, abi the suffering not dey reach una area ni? Morons

Knowledge9000:


Typical yoruba...can you get it into your head that Eastern region wants nothing but separation? BTW Stop separating us by saying Igbo and SS in your last paragraph...doesn't make sense. Get this in your divisive brain...50% of so-called SS are Igbos. Igbos are majority in Rivers and Delta states. They are also native Igbos in Cross Rivers, Akwa Ibom and Bayelsa. I'm lecturing you because many of you yorubas don't travel so that when another civil war starts, you don't foolishly run into Igbo areas thinking IT'S YOUR IMAGINARY SS.

Knowledge9000:


Typical yoruba...can you get it into your head that Eastern region wants nothing but separation? BTW Stop separating us by saying Igbo and SS in your last paragraph...doesn't make sense. Get this in your divisive brain...50% of so-called SS are Igbos. Igbos are majority in Rivers and Delta states. They are also native Igbos in Cross Rivers, Akwa Ibom and Bayelsa. I'm lecturing you because many of you yorubas don't travel so that when another civil war starts, you don't foolishly run into Igbo areas thinking IT'S YOUR IMAGINARY SS.

StOla:
[s]

This bigoted loudmouth has been claiming Igbo ownership of the SS region. He has characteristically produced a 50% statistic from his arse as Igbos are wont to do. From "we SE and SS", it is now "we Igbos in the whole south, nothing like SS" The Igbo man has unilaterally declared the SS as non existing, and termed all as Easterners with Igbo majority. The ambitious and greedy Igbos never learn from their history fraught with self inflicted misery.

So Delta state is now 50% Igbo, minus the Itshekiri, Ijaw and Isoko, I reckon the Urhobos whose population has been dominating the state, account for just 25% versus the 50% Igbo.

Ikwerre are majority in Rivers, if they finally accept they are Igbos, then your majority claim in Rivers might stand.

That Cross River, Akwa Ibom and Bayelsa have 1 or 2 Igbo villages that don't even constitute a local government area, doesn't make the insignificant Igbo size there translate to a majority in the general South South population.

That there are Yoruba villages in Edo and Delta, in addition to the Itshekiris in both states, doesn't make the Yorubas majority in the SS.

As for the SS / NigerDelta, in the event that Nigeria has to split, you will do well to exorcise any Igbo village out of your new country to prevent Igbo encroachment into your territory. They are good at being humble like beggars when they come cap in hand, but once they think they have an advantage, their true character blossoms.
You do not need them for anything, they can only be a nuisance that nullifies whatever gains you made by exiting Nigeria.

Use them if you must since they are beggars without a choice, then discard them when they outlive their usefulness.

Don't be a fool to the Igbos, they only love fools as friends[/s].

basilo101:

Lol, i smell frustrations. the power of 5%

mesoprogress:
It's a pity, we have leaders that refused to think. It's unfortunate, they are not smart, they should have seen this coming and plan accordingly. Military intervention takes time and will worsen the situation.

Now oil prices are low, regions should be gradually weaned from oil. Why not grant ND their request of more resource control? Have a frank talk with them, have a time line to gradually heed their request. 60-40 is not a bad deal. Regions pay 40% tax to federal account on natural resources, be it oil, coal, minerals etc.

Though you can't give them 60% suddenly, hunger may kill other regions off. That's why you need a frank talk with niger delta. Current 13% can be Instantly jacked up to 20%, and subsequently increased by 10% yearly until 60% mark is achieved. This will give other regions time to adjust and seek other sources of income. I'm sure our ND brothers will accept this term wholeheartedly.

At the end of four years, nobody will be dependent on ND oil. They can afford to either develop or impoverish their land. The whole South want restructuring. Yoruba, Igbo, SS. Even middle belt is in game. Two northern regions can't hold the whole country to ransom. He that has ear, let him hear. This is for the good of all

Uduak2019:


Nonsense. That guy is right. We have over 5 Igbo villages here in Cross River, Our former governor Imoke is an Igbo man and speaks fluent Igbo. Rivers, I would say Igbos are over 65-70%...that's why Igbos dominate in all elections and have been ruling Rivers since 1999. Ikwerre is Igbo...don't let anyone fool you. The Ikewerre and Igbo divide only exist online, if you come to Port Harcourt...THEY ARE ONE PEOPLE, YOU WON'T EVEN KNOW. Delta is roughly 50% Igbo...they are many Igbo sub groups aside from Anioma and Agbor that many people don't know....that's why they think they are small. Itshekiri and Urhobo don't make up to 40%, and Ijaw is about 10%. Ijaws are predominately in Bayelsa but very tiny in Rivers and Delta. There is a reason why Asaba has remained the capital of Delta state despite Itshekiri and Urobo wanting to move it to Warri...they have tried under Ibori, Udaghan but realized it was impossible having seen how much of power and population of Igbos in the state. If Igbos were less than 50%, I swear they would have moved it to Warri via a bill in the State house of assembly but they know that 50% of the members in the house are IGBO, so you see why its not possible? I have lived in Calabar, Port Harcourt and Asaba...so I know.

mesoprogress:
It's a pity, we have leaders that refused to think. It's unfortunate, they are not smart, they should have seen this coming and plan accordingly. Military intervention takes time and will worsen the situation.

Now oil prices are low, regions should be gradually weaned from oil. Why not grant ND their request of more resource control? Have a frank talk with them, have a time line to gradually heed their request. 60-40 is not a bad deal. Regions pay 40% tax to federal account on natural resources, be it oil, coal, minerals etc.

Though you can't give them 60% suddenly, hunger may kill other regions off. That's why you need a frank talk with niger delta. Current 13% can be Instantly jacked up to 20%, and subsequently increased by 10% yearly until 60% mark is achieved. This will give other regions time to adjust and seek other sources of income. I'm sure our ND brothers will accept this term wholeheartedly.

At the end of four years, nobody will be dependent on ND oil. They can afford to either develop or impoverish their land. The whole South want restructuring. Yoruba, Igbo, SS. Even middle belt is in game. Two northern regions can't hold the whole country to ransom. He that has ear, let him hear. This is for the good of all

AntiIPOOP:

First of all, I was not frustrated. Secondly, the opinion of the 5% doesn't matter.

Uduak2019:


Nonsense. That guy is right. We have over 5 Igbo villages here in Cross River, Our former governor Imoke is an Igbo man and speaks fluent Igbo. Rivers, I would say Igbos are over 65-70%...that's why Igbos dominate in all elections and have been ruling Rivers since 1999. Ikwerre is Igbo...don't let anyone fool you. The Ikewerre and Igbo divide only exist online, if you come to Port Harcourt...THEY ARE ONE PEOPLE, YOU WON'T EVEN KNOW. Delta is roughly 50% Igbo...they are many Igbo sub groups aside from Anioma and Agbor that many people don't know....that's why they think they are small. Itshekiri and Urhobo don't make up to 40%, and Ijaw is about 10%. Ijaws are predominately in Bayelsa but very tiny in Rivers and Delta. There is a reason why Asaba has remained the capital of Delta state despite Itshekiri and Urobo wanting to move it to Warri...they have tried under Ibori, Udaghan but realized it was impossible having seen how much of power and population of Igbos in the state. If Igbos were less than 50%, I swear they would have moved it to Warri via a bill in the State house of assembly but they know that 50% of the members in the house are IGBO, so you see why its not possible? I have lived in Calabar, Port Harcourt and Asaba...so I know.

Modsenemy:
How does Buhari or the ND take the blame for this again? I'm not sure there's a part that said we didn't have enoff oil to supply rather the buyers didn't demand for a tangible quantity. This is bound to happen in any business hence the more reason to diversify. What will happen if someday, cars don't run on petrol anymore?