Worry over economy as Nigeria struggles for crude buyers

Worry over economy as Nigeria struggles for crude buyers

Revenue from crude sale may dwindle as Nigeria is still struggling to find buyers for its oil following strikes at French refineries.

Seasonal maintenance at plants in other parts of Europe has also reduced oil demand.

Little Nigerian crude traded last week, with more than 20 shipments for April loading still hunting for buyers, according to traders specialising in the West African market.

Daily Trust, quoting Bloomberg, reports the situation is similar to 10 days ago, when 20 to 25 of the cargoes — holding 1 million barrels of oil each — were on the market.

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Sellers have limited options to clear the glut of oil, consultancy FGE said on March 29.

Cargo holders could look to resell their supplies at a discount, or hold the volumes in floating storage until the refinery strikes are over, Steve Sawyer, director of refining at the FGE, said.

OPEC+ has announced a surprise oil production cut of more than 1 million barrels a day, abandoning previous assurances that it would hold supply steady and posing a new risk for the global economy.

It is a significant reduction for a market where — despite the recent price fluctuations — supply was looking tight for the latter part of the year.

Oil futures soared as much as 8% in New York on Monday while petrol also gained, adding to inflationary pressures that may force central banks around the world to keep interest rates higher for longer.