In an era where all you hear these days are bad news about Nigeria in the oil industry space we have just been inundated with a rather heart warming news.
Reuters reports, Saudi Arabia lost its spot last month as India’s top oil supplier to Nigeria for the first time in at least four years. This is coming at a time where Nigeria has been finding it difficult to sell its much sort after Bonny Light crude at a premium.
According to the article, Indian refiners have been switching out of long-term contracts with Middle East suppliers in favour of spot purchases, often African oil.
The share of African oil, mainly from Nigeria and Angola, jumped to 26 percent of India’s total imports in May, up from around 15.5 percent in April and the highest in more than four years, according to tracking data on tanker arrivals.
At the same time, the Middle East share fell to 54 percent in May from 61 percent, with Saudi Arabia supplying some 732,400 barrels per day (bpd) compared with Nigeria’s 745,200 bpd.
Despite this good news, danger lurks on the horizon as Saudi is not relenting on its efforts to regain market share. The Oil rich Gulf Nation is said to have promised Indians free shipping provided they purchase their oil an offer that Nigeria is unlikely to match.
