Wednesday, May 1, 2013

Nigeria's June oil exports to fall to lowest since August 2009

LONDON (Reuters) - Nigeria looks set for its lowest crude oil exports in nearly four years in June, shipping lists showed on Tuesday, highlighting how badly theft from pipelines is affecting Africa's largest economy.


The lists indicate that Nigeria will export 1.76 million barrels per day (bpd), the lowest level since August 2009, Reuters data showed.

The OPEC member, which is heavily reliant on revenues generated from exports of oil, has suffered from theft from pipelines which cause leaks and damage to the environment.

Royal Dutch Shell earlier month declared a force majeure The Bonny Light grade of crude oil which caused it to close the 150,000 barrel per day (bpd) Nembe pipeline for six weeks.

The lower figure could further dent Nigeria's reputation as a reliable exporter, and could prompt buyers to seek alternative suppliers, said Rolake Akinkugbe, head of energy research at the pan-African Ecobank Group.

"It further puts into question their competitive position, as it gives the impression that there is no security of supply, so buyers could look to other markets where they see supply as more stable."

In 2009 the military began an offensive against militants in the Niger Delta, and later that year declared an amnesty aiming to quell violence which was damaging the area's oil industry.

The force majeure on the Bonny Light grade means that no Bonny Light cargoes have been assigned to load in June, and some traders said that none are likely to.

However, some three cargoes are thought to have been deferred from May into June, meaning that there will be some available.

yahoo.com

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