Nigeria’s economy, which heavily relies on its oil industry, faces a looming crisis as many barrels scheduled for export in April and May 2025 remain unsold.
This backlog negatively impacts the country’s revenue forecasts, exacerbating existing issues in the energy sector.
Popular blends like Bonny Light, Forcados, Qua Iboe, and Escravos, along with lesser-known grades such as Djeno, Girassol, and Mostarda, are also affected.
Over half of Nigeria’s planned oil shipments for the upcoming months have yet to find buyers. The total unsold volume—believed to exceed 80 million barrels—is based on all available cargoes.
Bahlil Lahadalia, Minister of Energy of the Republic of Indonesia, has announced plans to secure import contracts for U.S. crude oil and LPG worth $10 billion.
This approach seeks to improve trade relations with the U.S. while minimizing the impact of tariffs that may lead to lower sales from other countries, including Nigeria.
Both objectives would contribute to Indonesia’s trade surplus with the U.S. while circumventing the expected 32% export duty by purchasing approximately $19 billion in American goods.
Nigeria is a major supplier of crude oil to Indonesia, exporting over $3.8 billion worth of crude oil and gas to the Asian nation in 2023.
According to Kpler, these figures positioned Nigeria, Saudi Arabia, and Angola as the primary providers for Indonesia, which last year imported around 306,000 barrels of crude oil daily.
However, this situation could affect sales from Angola and Nigeria—two of the most critical markets at a time when oil revenues are essential.
Crude Oil Bearish for the Week
Oil prices have risen for two consecutive sessions, supported by the anticipated de-escalation of the Sino-American trade war, but the market is still projected to finish the week on a decline due to oversupply concerns.
- Brent crude futures increased by 43 cents to $67 per barrel and are set to decline by 1.4 percent by the end of the week.
- Meanwhile, U.S. crude, West Texas Intermediate, turned positive in the last trading session, trading at $63.21 per barrel, but is expected to decrease by 2.3 percent this week.
- Oil prices rose slightly due to faint signals suggesting easing tensions over sanctions on imported goods and possible policy changes by the Federal Reserve.
Rising concerns from OPEC+ over weak demand, coupled with geopolitical trade union conflicts, have caused prices to drop week after week. Moreover, the ever-strengthening U.S. dollar continues to drag down crude prices.
U.S. President Donald Trump’s recent comments on the China-U.S. trade talks allowed markets to regain some ground this week after he highlighted the U.S. trade stance, claiming that conversations with China were ongoing after they pushed back on U.S. proposals.
- China is considering exempting certain U.S. imports from its 125% tariffs and has asked businesses to provide lists of products that may qualify. This reflects Beijing’s concerns about the economic fallout from the trade war.
- China raised its tariffs after Trump announced additional demands on Chinese products. Oil prices tumbled earlier this month after the tariffs raised concerns about global demand and triggered a sell-off in financial markets.
- Tensions are growing over excess supply. Several OPEC+ members have suggested the group accelerate oil output increases for a second month in June.
The United States and Russia are moving toward concluding the war in Ukraine, but several elements of a deal remain unresolved.
A halt to Russia’s war in Ukraine and the lifting of sanctions could allow more Russian oil to return to global markets.
Russia, a member of the OPEC+ group that includes the Organization of the Petroleum Exporting Countries, is one of the world’s largest oil producers alongside the U.S. Iranian Foreign Minister Abbas Araqchi also stated on Thursday that he is prepared to travel to Europe for talks on Tehran’s nuclear program.
