AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 180.0SHORELINK BULK STRATEGIC PHTULCAN/TSLMASTERSLIQUID BULKSTOCKGAPNIPCO/SIGMUND₦ 180.0BULK STRATEGIC/NIPCOOVHCONOILSAHARA CALABAR DEPOTDEPOT PRICENORTHWESTAMMASCOMAINLAND₦ 175.0SAMON PETFYNEFIELD₦ 176.0ALKANES₦ 175.8YSG (YOUNG SHALL GROW)₦ 175.5BLOKKS HYDEAZMAN/NIPCOUGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦172.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦170.0MATRIX₦170.0CYBERNETICSTAURUS₦169.0OPTIMA₦170.0PINNACLEAYM SHAFA LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 169.0IBACHEM₦ 169.0IBETO₦ 169.0MRS₦ 170.0LEIGHTEN PETINDEX₦ 168.0ETERNA₦ 168.0FOLAWIYO₦ 168.0OBATCHIPET₦ 168.0RAHAMANIYYAA ZNIPCO₦ 170.0AITEO₦ 170.0AIPEC₦ 168.5SAHARA₦ 168.0EMADEB...
Author: oilpriceng
Nigeria Optimistic of Price Rebound After Crude Sold for $12
Despite the slide of the crude oil reference price for Bonny Light to about $12 per barrel last week, Nigeria remains optimistic the situation at the international oil market would still rebound.
The Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, in an interview with PREMIUM TIMES on Saturday in Abuja said the intervention of the Organisation of Petroleum Exporting Countries(OPEC) and its allies will soon lead to a rebound of oil prices.
According to Bloomberg, the price of bonny light, Nigeria’s premium oil grade, crashed from about $28 to $12 or $13 a barrel last week.
The news organisation said its data was provided by traders monitoring the West African market.
The present price of bonny light is well below the cost of production for Nigerian crude producers which is about $22 a barrel and also lower than the country’s crude benchmark of $30 per barrel.
This poses a fresh threat for Nigeria as it depends on crude sales for half of its revenue and 90 per cent of foreign exchange earnings.
About a week ago, faced with the grim reality of the impact of the current coronavirus pandemic which drove the global crude oil price to below 18 year’s low level, OPEC and its allies including Russia, resolved to undertake a cut of about 10 million barrels per day from their members’ oil production.
Considered the largest cut by OPEC in recent times, the cut in global oil supply was aimed at stabilising the market and bringing to a halt the spiralling decline in crude oil prices.
However, since the intervention, crude oil price continued a back and forth movement, indicating continued adjustment in search of the desired stability in the market.
The pattern may be as a result of the partial and total lockdown of economic activities in many countries in order to curtail the spread of the pandemic.
Also, traditional European buyers have stopped purchasing because the demand there has virtually collapsed.
In the interview with PREMIUM TIMES, Mr Kyari, who is also Nigeria’s National Representative in OPEC, said he remained optimistic the market conditions post-OPEC intervention will rebound and stabilise.
“The $12 per barrel (quoted on Friday in a Bloomberg report) is in reference to the benchmark or lowest possible price of a specific day last week, minus $4 discount.
“This is the market reality today after the recent output cut by OPEC+. But, I am optimistic it will rebound with the supply cut. “Yesterday (Friday) it was $28 ($24 less discount),” Mr Kyari said on Saturday.
He said crude oil price is very mobile at the moment, as the market conditions are yet to rebalance since the recent OPEC+ decision to cut output.
Bonny Light is Nigeria’s premium reference blend of sweet crude in the international market similar to the popular Brent crude. It is produced largely in the Niger Delta region.
Aside bonny light, other crude grades of the country are Forcados, Qua Iboe and Brass River.
source: Premium Times
20-04-2020
AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 180.0SHORELINK BULK STRATEGIC PHTULCAN/TSLMASTERS₦ 178.0LIQUID BULKSTOCKGAP₦ 179.0NIPCO/SIGMUND₦ 180.0BULK STRATEGIC/NIPCOOVHCONOILSAHARA CALABAR DEPOTDEPOT PRICENORTHWEST₦ 176.0AMMASCO₦ 176.0MAINLAND₦ 176.0SAMON PET₦ 176.0FYNEFIELD₦ 176.0ALKANES₦ 176.0YSG (YOUNG SHALL GROW)₦ 176.0BLOKKS ₦ 176.0HYDE₦ 176.0AZMAN/NIPCO₦ 176.0UGO HANNAH₦ 176.0 WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦172.0NEPAL OIL & GAS / NNPCPRUDENT OGHARA₦167.50MATRIX₦170.0CYBERNETICSTAURUS₦169.0OPTIMA₦170.0PINNACLEAYM SHAFA LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 169.5IBACHEM₦ 169.5IBETO₦ 170.5MRS₦ 170.0LEIGHTEN PETINDEX₦...
No buyers yet for 50m barrels of Nigeria’s crude oil ― Platts
Global energy data, financial information and analytics company, S&P Global Platts, disclosed that more than 50 million barrels of Nigerian crude oil for late April and May 2020 loading are still unsold, while the overhang is forcing down the value of Nigeria’s crude oil.
In a report on its website, Platts stated that Nigerian crudes, which are largely low in sulfur and yield a generous amount of diesel, jet fuel and gasoline, are finding it very difficult to attract interest from refiners in a market where demand has been battered due to the Coronavirus pandemic.
“A lot of Nigerian crude is already floating on the seas and in storage tanks with no home and destination. Some sellers have no option but to continue to look to floating storage, even as freight rates remain at elevated levels,” S&P Global Platts stated.
According to Platts, the sheer weakness of the physical oil market can be best explained by the state of the Nigerian crude market, as the once-coveted light sweet Nigerian barrel is facing one of its toughest trading cycles, as refiners shun these crudes, even as they are trading at record-lows.
It noted that sellers were resorting to holding some of this oil on inland or floating storage, to hope to sell at a later date, when demand recovers.
It quoted a crude oil trader as stating that, “all those who want to sell or get rid of a cargo are asking for bids … you find a treasure if you get a bid.”
Platts noted that demand destruction for jet fuel and gasoline had been particularly severe as the bulk of the world remains in lockdown, with restrictions on driving and flying.
Another reason for low demand for Nigerian oil, according to the company, had been that its big main customers — Europe and India — have massively cut their refining runs.More in Home
It said, “This overhang of Nigerian crude, is possibly the largest ever in recent trading cycles, according to traders. This has pushed Nigerian crude values to record-lows and is weighing down on the already-depressed Atlantic Basin crude market.
“The fall in Nigerian crude differentials has been cataclysmic. Bonny Light was assessed at a discount of $5.70 per barrel to Dated Brent on Wednesday, its lowest level since S&P Global Platts started assessing the grade in July 2001. Similar values were heard on Thursday afternoon, sources added. At the start of the year, it was trading at a premium of $1.70 per barrel to Dated Brent.
“The June loading program for Nigeria is expected to be released in just under a week, to add to the glut. Under the new OPEC/non-OPEC deal, Nigeria has committed to keep its crude output at 1.412 million barrels per day in May and June and at 1.495 million barrels per day between July and December. From January 2021 to April 2022, it will keep the output at 1.579 million b/d.
“Last week, Nigeria was producing 2.30 million b/d of crude and condensates, according to senior oil officials. With May loading cargoes already trading, sources were unsure as to how the cuts would be implemented from May, though they expect some barrels to be stored rather than exported as the demand picture already looks very bleak.”
17-04-2020
AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 185.0SHORELINK ₦ 190.0BULK STRATEGIC PHTULCAN/TSLMASTERS₦ 183.0LIQUID BULKSTOCKGAP₦ 183.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOOVHCONOIL₦ 183.0SAHARA CALABAR DEPOTDEPOT PRICENORTHWEST₦ 183.0AMMASCO₦ 183.0MAINLANDSAMON PET₦ 183.0FYNEFIELD₦ 176.0ALKANES₦ 176.8YSG (YOUNG SHALL GROW)₦ 176.0BLOKKS HYDEAZMAN/NIPCO₦ 183.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 175.0NEPAL OIL & GAS / NNPC₦ 175.0PRUDENT OGHARA₦167.50MATRIX₦170.0CYBERNETICSTAURUS₦175.0OPTIMA₦170.0PINNACLEAYM SHAFA₦ 173.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 170.5IBACHEM₦ 170.5IBETO₦ 170.5MRS₦ 170.0LEIGHTEN...
Oil price hovers around $31 despite OPEC+ cut deal
The international oil benchmark, Brent crude, wobbled on Monday, despite the historic oil production cut deal sealed by the Organisation of Petroleum Exporting Countries and its allies on Sunday.
The OPEC, Russia and other countries agreed on Sunday to cut output by 9.7 million barrels per day in May and June, representing about 10 per cent of global supply.
The deal was expected to prop up prices but Brent crude rose, then fell and rose again on Monday. It was up by $0.47 to $31.95 per barrel as of 6.40 pm Nigerian time.
Saudi Arabia, OPEC’s de facto leader, on Monday set its May official selling prices for crude, selling oil to Asia more cheaply and keeping prices flat for Europe while raising them for the United States.
The US President, Donald Trump, made a case on Monday for doubling the oil supply cuts just approved by OPEC+ to 20 million bpd, saying the move would restore the energy sector faster.
He said on Twitter, “Having been involved in the negotiations, to put it mildly, the number that OPEC+ is looking to cut is 20 million barrels a day, not the 10 million that is generally being reported.
“If anything near this happens, and the world gets back to business from the Covid-19 disaster, the energy industry will be strong again, far faster than currently anticipated.”
His tweet did not appear to move oil markets, which were waiting for greater clarity on the deal reached on Sunday after Saudi Arabia, under pressure from the US, ended a four-day stalemate with Mexico that threatened to escalate a price war in the middle of the coronavirus crisis, according to S&P Global Platts.
Under the deal announced on Sunday, the 23-country OPEC+ alliance rein in 9.7 million bpd of crude oil production for May and June – down from 10 million bpd originally envisaged, as Mexico was allowed a more generous quota.
Outside of OPEC+, Canada has signalled a willingness to cut and Norway said it would decide about its cut “in the near future”, according to Reuters.
Source: https://www.energymixreport.com/oil-price-hovers-around-31-despite-opec-cut-deal/
Nigeria to earn $10.61bn in eight months from crude production cuts
Nigeria may earn about $10.61bn from crude oil sales between May and December this year following latest decision by members and non-members of the Organisation of Petroleum Exporting Countries to cut production.
Also, the country will earn about $22.74bn from crude oil between January 2021 and April 2022 going by the volume of crude oil curtailment to be implemented by Nigeria during the 16-month period, as agreed by OPEC+.
These earnings are based on the $30/barrel average price of Brent, the crude against which Nigeria’s oil is priced.
Crude oil price in Nigeria’s 2020 budget was recently rebased from $57 to $30 following the crash in global oil prices occasioned by the impact of COVID-19.
In the OPEC+ agreement, Nigeria will join the group to cut supply by 9.7 million barrels per day between May and June 2020, eight million barrels per day between July and December 2020 and six million barrels per day from January 2021 to April 2022.
Minister of State for Petroleum Resources, Timipre Sylva, explained that based on reference production of Nigeria for October 2018 of 1.829 million barrels per day of dry crude oil, Nigeria would now be producing 1.412 million barrels per day, 1.495 million barrels per day and 1.579 million barrels per day respectively for the corresponding periods in the agreement.
At a production of 1.412 million barrels per day for 30 days in May 2020, going by Sylva’s explanation, Nigeria will be producing about 42.36 million barrels for the month.
It will also produce the same volume in June, bringing the total volume for both months to 84.72 million barrels.
With an average cost of $30 per barrel, Nigeria will therefore earn $2.54bn from crude in May and June 2020.
The country is to produce 1.495 million barrel per day from July to December 2020, which is a little above 180 days for the six-month period, hence total crude production during the period will be 269.1 million barrels, valued at $8.1bn.
It therefore implies that from May to December 2020, the country will earn $10.61bn.
Sylva, in his breakdown on Nigeria’s production cut in relation to the agreement by OPEC+, stated that from January 2021 to April 2022, Nigeria would be producing 1.579 million barrels daily.
This means that the country will produce 757.92 million barrels during the 16-month period and if the $30 average benchmark price for Brent persists, the country will earn $22.74bn.
Oil prices, however, had been fluctuating and operators believe that the commodity will increase beyond the $30 per barrel price once OPEC+ and other G20 countries start implementing the agreed cuts in crude oil production.
Source: https://www.energymixreport.com/nigeria-to-earn-10-61bn-in-eight-months-from-crude-production-cuts/
Bonny Light crude price remains low at $23.25 per barrel
Despite the oil cut initiative of the Organisation of Petroleum Exporting Countries, OPEC, and non-OPEC members, the price of Bonny Light, Nigeria’s premium oil grade only rose marginally from $23.19 to $23.25 per barrel, yesterday.
The prices of other crudes, including Brent and OPEC Basket also remained low at $32.05 and $21.19 per barrel respectively.
Investigation by Vanguard showed that it would take a much longer time for the market to respond to the oil cut as the market was saturated with excess oil from many nations, including Mexico, which has already opted out of the accord.
Moved to tackle the prolonged instability in the market, the 10th (Extraordinary) OPEC and non-OPEC Ministerial Meeting held via video conference, on Sunday, April 12, 2020, had agreed to, “Adjust downwards their overall crude oil production by 9.7 mb/d, starting on May 1, 2020, for an initial period of two months that concludes on June 30, 2020. For the subsequent period of 6 months, from July 1, 2020 to December 31, 2020, the total adjustment agreed will be 7.7 mb/d.”
The Meeting also agreed that this “will be followed by a 5.8 mb/d adjustment for a period of 16 months, from January 1, 2021 to April 30, 2022. The baseline for the calculation of the adjustments is the oil production of October 2018, except for the Kingdom of Saudi Arabia and The Russian Federation, both with the same baseline level of 11.0 mb/d.”
Source: https://www.energymixreport.com/bonny-light-crude-price-remains-low-at-23-25-per-barrel/
Sixty Nigerian oil cargoes unsold despite price cut
A total of 60 Nigerian crude oil cargoes have not been sold despite the reduction of the official selling prices by the Nigerian National Petroleum Corporation.
A glut of Nigerian and Angolan crude weighed on the market on Tuesday with demand from China slower than in the last few weeks, Reuters reports.
“It’s a buyer’s market right now,” one trader was quoted as saying, adding that nothing was shifting.
According to Reuters, the glut of unsold Nigerian oil was around 60 cargoes for April and May, and cargoes of Qua Iboe and Bonny Light crude continued to be offered at around dated Brent minus $3.
The Nigerian National Petroleum Corporation was reported in March to have cut its April official selling prices for Bonny Light and Qua Iboe, two of the nation’s major grades, by $5 per barrel to dated Brent minus $3.29 and minus $3.10 per barrel, respectively.
Source: https://www.energymixreport.com/sixty-nigerian-oil-cargoes-unsold-despite-price-cut/
16-04-2020
AGO [/vc_column_text][/vc_column][/vc_row]PORT HARCOURT DEPOTDEPOT PRICEAVIDOR PH/NIPCO₦ 185.0SHORELINK ₦ 190.0BULK STRATEGIC PHTULCAN/TSLMASTERS₦ 183.0LIQUID BULKSTOCKGAP₦ 183.0NIPCO/SIGMUND₦ 185.0BULK STRATEGIC/NIPCOOVHCONOIL₦ 183.0SAHARA CALABAR DEPOTDEPOT PRICENORTHWEST₦ 183.0AMMASCO₦ 183.0MAINLANDSAMON PET₦ 183.0FYNEFIELD₦ 176.0ALKANES₦ 176.8YSG (YOUNG SHALL GROW)₦ 176.0BLOKKS HYDEAZMAN/NIPCO₦ 183.0UGO HANNAH WARRI DEPOTDEPOT PRICERAINOIL OGHARA₦ 175.0NEPAL OIL & GAS / NNPC₦ 175.0PRUDENT OGHARA₦167.50MATRIX₦170.0CYBERNETICSTAURUS₦175.0OPTIMA₦170.0PINNACLEAYM SHAFA₦ 173.0 LAGOS DEPOTDEPOT PRICEAFRICA TERMINALS₦ 170.5IBACHEM₦ 171.0IBETO₦ 171.0MRS₦ 170.0LEIGHTEN...