A lot has been written lately about the spillover effects of trouble in the oil patch. We have touched on it several times. Just how pervasive is it, well, this article might give you a glimpse.
It is a buyer’s market.” This phrase is omnipresent on most oil trader’s lips these days as crude oil prices continue to slide. None typifies this better than the current state of the Nigerian crude oil market. Overhang, glut, oversupply, unsold barrels, are some of the words most associated with Nigerian crude.
Rewind to almost a decade ago: Nigerian crude was every refiners’ oil of choice. Most of them wanted to refine Nigerian light sweet oil in order to produce a substantial amount of middle distillates and gasoline, the profit-making products for refineries.
Now fast forward to the present day. Nigerian crude has lost its appeal. With the growing pace of technological advancement in refineries that can take a greater variety of crude grades, Nigerian crude is no longer the talk of the town.
In the past six years Nigeria also lost its biggest customer, the US, which now buys only a small amount of Nigerian crude oil due to the dramatic rise in domestic shale production. And Nigeria has still not been able to adapt to this loss.
blogs.platts.com/2015/12/14/nigerian-crude-no-longer-talk-of-town
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