Nigerian crude under pressure as more Asian refiners opt for U.S. oil


Nigeria’s crude oil is under serious pressure at the international market, as Asian refiners have increasingly been moving away from their usual favourite, frequently opting for United State (U.S) crude oil instead, The Guardian reports.

The Organisation of the Petroleum Exporting Countries (OPEC), which made this disclosure in its November monthly oil report yesterday, said Taiwan’s latest tender showed Asians’ increased appetite for U.S. crude oil and that this could eventually lead to an overhang of Nigeria’s crude oil on the international market.

It noted that differentials for Nigerian crude were also under pressure on low U.S. refining demand and with Chinese refiners increasingly switching their slate to use more U.S. crude over the last few months. OPEC disclosed that during the month under review, trade was limited and some tenders that were expected to clear an overhang in November-loading Nigerian crude failed to do so.