Nigerian crude export has shrunk for the months of May and June following the dwindling oil prices and the coronavirus pandemic.
The export programmes for West African crudes emerged weekend and showed lower volumes for this month and the next, in line with unprecedented output cuts by producers and a lack of demand.
According to Reuters, the Royal Dutch Shell circulated its export schedule for June loadings of Nigerian Bonny Light and Bonga crude, with the former set to fall sharply in June to 190,000 barrels per day (bpd) from 245,000 planned for May.
The report said loading plans have been disrupted as Nigeria has haggled with international majors on cutting output following a pact by OPEC and producer countries to limit supplies to prop up global oil prices, effective from May 1.
One Bonny Light cargo from Shell originally schedule for June 1-2 export was delayed to June 7-8.
Volumes for the four major grades tracked by Reuters are set to plunge to 602,000 bpd from 828,000 originally planned in May, though those volumes, along with those of other grades, have been reduced because of downward revisions to the May schedule.
The June exports of the grades are more than a third lower than volumes planned for March, circulated before lockdowns to contain the outbreak of the novel coronavirus went widely into force. Market sources linked the fall to the producer supply cut pact and to record low prices for West African grades.
A rally in Brent crude prices this week from more than two-decade lows below $20, combined with major producer Norway’s plans to cut output for the first time in nearly 20
years helped to boost differentials.
Many sellers of West African crude remained pessimistic, however, saying an overly sudden rise to the dated Brent benchmark from which West African grades are priced could
undermine the contango market structure, which was one of the few factors buoying sales.
Global crude outlook
Meanwhile, global oil markets are showing early signs of rebalancing after production cuts by OPEC and the United States, with the market’s pricing structure indicating that storing oil on idle tankers may soon no longer be profitable, Mercuria Energy Group said.
Iraq’s total oil exports for April averaged 3.438 million bpd and oil revenue more than halved to $1.42 billion, a statement from the oil ministry said on Friday.
ExxonMobil Corp and Chevron Corp are halting US shale oil production as crude prices and fuel demand have plunged because of global lockdowns to fight the coronavirus pandemic have destroyed fuel demand.
