Nigeria’s Crude Export Drops, September

There are indications that Nigeria could export about 70 cargoes of crude oil in September, down from 77 cargoes in August, representing a sharp decrease in daily crude oil exports.

According to shipping schedules, the country will export 70 cargoes totaling 64.1 million barrels, or 2.14 million barrels a day, the least loading schedule since March 2012.

The nation will ship 10 cargoes of Qua Iboe, eight Agbami, Six Akpo, Six Forcados, Five Bonga, Five Bonny Light, four Brass Rivers, Four Escravos, four Usan, three Amenam, three Autan, three Erha, two Abo, two Okono, two Yoho, one EA, One Okwori and one Pennington, according to the schedules.

Exports in August were revised down to 77 cargoes, or 2.27 million barrels a day, after one Okono cargo was deferred to September. Loading programmes are monthly schedules of crude shipments compiled by field operators to allow buyers and sellers to plan their supply and trading activities.

The West African export seems on the downward trend as the fellow OPEC member Angola’s oil exports in September are set to fall by 300,000 barrels per day (bpd) to the lowest since June 2011. Its exports briefly rivaled Nigeria’s in early 2010 but have since fallen back due to natural decline at some fields and maintenance work.

According to the schedule  quoted by Reuters, exports are set to average 1.57 million bpd in September. The schedule lists 49 cargoes and does not yet include any Mondo and Gimboa crude shipments, which could be added later and lift the overall total.

The drop bolster differentials for Angolan crude in the West African market, which has come under pressure from ample supplies, but that also will depend on the strength of demand in September from big purchasers such as China.

Traders said the drop in output partly reflected field maintenance and seasonal factors as September tends to be a “low month” for Angola’s exports. Crude streams including Cabinda. Nemba, Hungo, Plutonio and Pazflor are scheduled to export fewer cargoes in September.

Angola was set to export an average of 1.87million bpd in August according to Reuters calculations based on loading programmes provided by trading sources, which is the highest scheduled in two and a half years.

Shedie Okpara