Nigeria may be in for good times as crude oil exports to Portugal and India have resumed. Portugal , which last imported crude oil from Nigeria in November last year, imported 948,000 barrels of crude according to oil destination data for the month of May published by the Nigerian National Petroleum Corporation (NNPC). Cameroun and Malaysia also resumed crude oil purchases.
India however remained the biggest buyer of Nigeria’s crude oil with 7.4 million barrels purchased in May. Togo was the biggest African buyer of Nigeria’s crude oil in May with 6.7 million barrels purchased.
Reasons behind the renewed demand
Nigeria produces light sweet crude oil which is low in sulphur content and highly desired. the crude oil cargoes may also have been sold at a slight discount to current prices.
Why this is key
The resumption in crude oil purchases by these countries help to offset the switch by other countries. India, last month ramped up crude oil purchases from the United States. Nigeria is largely dependent on crude oil earnings to fund government revenue and as a source of foreign exchange.
Crude oil production was disrupted last year by militant attacks on oil installations, but a ceasefire has been in place.
Here is a copy of the NNPC report.