Nigeria’s economy is under threat, as preliminary crude oil loading programmes showed that some of the country’s grades are not in demand for December loading.
According to reports from Bloomberg, loading schedules showed that there would be a decline for the country’s oil in the last month of the year, as grades, such as Erha stream, were not expected – taking its usual 5-6 cargoes off the market while the Usan stream showed a single cargo, down from the usual two.
Among the country’s four main crude grades, exports for Bonga were down to 92,000 barrels per day for December from 158,000 bpd planned in November.
The development may pose a serious threat to the 2019 budget as the country relies largely on revenue from crude oil exports to fund its national budget.
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President Muhammadu Buhari in a recent statement had blamed the low 2019 implementation on low oil sales.
One of Nigeria’s crude grades, Forcados will also face low demand and export in December. Loading schedules show that Forcados will load 9 cargoes at a daily rate of 257,000 barrels, down from 263,000 bpd in November. Schedule will see Escravos loading 6 cargoes, Agbami four, Amenam three and Yoho one in December.
Vitol had offered a prompt cargo of Forcados in the window at dated Brent plus $5.00 on a delivered basis Rotterdam during Nov. 4-5, down 40 cents a barrel.
Bonny Light exported through Aiteo’s operated Nembe Creek Trunk Line, NCTL, has been under force majeure for a major part of this year. Schedule shows it is also missing.
The 150, 000 barrels per day capacity NCTL is a key pipeline connected to the Bonny terminal.
