Nigerian Crude Oil Faces Tepid Demand in April Trade Cycle

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Nigerian crude oil grades have experienced a decline in demand in the April trade cycle as European buyers opt for lower-priced alternatives such as US WTI, Caspian CPC Blend, and other Mediterranean grades. According to Argus Media, an independent energy and commodity price benchmarks provider, the trade cycle has shifted to May, with 15 April-loading Nigerian cargoes still seeking buyers.

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Market participants quoted by Argus Media stated, “As many as 15 April-loading Nigerian cargoes are still looking for buyers.”

However, Nigeria is set to introduce a new crude grade, medium sweet Obodo, to the market in April. The Obodo grade has a gravity of 27.65°API and a sulphur content of 0.05 percent, according to an assay seen by Argus.

It is expected that the Obodo grade will be priced in line with Nigerian medium sweet Bonga. Continental Oil & Gas, a Nigerian independent, will produce Obodo from onshore oil block OML 150 in the Niger Delta region, while state-owned NNPC will market the crude.

The introduction of Obodo will add to Nigeria’s growing supply of medium-sweet grades. Nigeria’s medium sweets, including Forcados, Escravos, and Bonga, have primarily found an outlet in Europe.

Nigeria’s upstream regulator, NUPRC, has outlined plans to increase the country’s liquids output by 1.07 million barrels per day by December 2026. The plan forecasts an injection of capital into Nigerian oil blocks through joint ventures, production-sharing contracts, and sole-risk contracts.

Meanwhile, Nigeria’s 210,000 barrels per day Port Harcourt refinery has been allocated three cargoes of domestic light sweet crude Bonny Light in April-May. The refinery, which restarted operations late last year, has been allocated a 950,000 bl cargo loading over 5-6 April and two 475,000 barrels shipments loading over 22-23 April and 1-2 May.

A source at NNPC stated that a 475,000 barrels shipment of Bonny Light had been due to be pumped to Port Harcourt before operations at the grade’s export terminal were briefly disrupted by a fire on the Trans Niger Pipeline last week

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