Nigeria’s Crude Oil Faces Low Demand, 15 Cargoes Await Buyers –

Nigeria’s crude oil grades are experiencing low demand in the April trade cycle, with European buyers opting for lower-priced alternatives. According to a report by Argus Media, an independent energy and commodity price benchmarks provider, the trade cycle has shifted to May, leaving 15 April-loading Nigerian cargoes without buyers.
The report attributed the low demand to the availability of cheaper alternatives, such as US WTI, Caspian CPC Blend, and other Mediterranean grades. This development has led to a surplus of Nigerian crude oil in the marke
However, Nigeria is set to introduce a new crude grade, Obodo, in April. The medium sweet Obodo has a gravity of 27.65°API and a sulphur content of 0.05%. The grade is expected to be priced in line with Nigerian medium sweet Bonga.
The Nigerian National Petroleum Company Limited (NNPC) will market the Obodo crude, which will be produced by Continental Oil & Gas from onshore oil block OML 150 in the Niger Delta region.
The introduction of Obodo is part of Nigeria’s efforts to expand its crude oil portfolio. The country has struggled to mobilize upstream investment and has consistently fallen short of its production growth targets.
In related news, the Port Harcourt refinery has been allocated three cargoes of domestic light sweet crude Bonny Light in April-May. The refinery, which restarted operations late last year, has been allocated a 950,000-barrel cargo loading over 5-6 April and two 475,000-barrel shipments loading over 22-23 April and 1-2 May.