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U.S. reduce monthly oil purchase from Nigeria by 89%

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The United States of America’s monthly oil imports from Nigeria reduced by nearly 90% as it dropped from 4.87 million bpd in January to 539,000 barrels per day in February.

According to the Energy Information Administration EIA data revealed this Friday, the country bought 5.18 million bpd in December, down from 10.03 million bpd in January 2018.

The US imports of Nigerian crude oil dropped by 48.87 million barrels or 43 percent in 2018, the EIA said. It fell to 64.06 million barrels last year from a five-year high of 112.92 million barrels in 2017.

The EIA data showed that the country imported 75.81 million barrels of Nigerian oil in 2016, up from 19.85 million barrels in 2015.

The likeliest reason for the reduction is the fact that the light sweet Nigerian crude is very similar to the light oil produced in US shale. Thus, as US shale production has grown, the appetite for Nigerian crude in the US has dropped dramatically.

With the sharp increase in its production, the US oil exports averaged 1.9 million bpd in 2018, about twice the amount that was exported in 2017, according to the EIA.

Crude oil exports from the US to the United Kingdom overtook supplies from other countries including Nigeria for the first time since such shipments began in 2015.

In January this year, the US supplied the equivalent of almost one in every four barrels of crude processed by UK oil refineries, or 264,000 bpd, according to the Financial Times.

Source Punch
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  1. […] U.S. reduce monthly oil purchase from Nigeria by 89% […]

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