The Nigerian National Petroleum Company Limited (NNPCL) has revealed how the ongoing Russia-Ukraine conflict has affected Nigerian crude oil inflows into the international oil market.
According to the NNPC Ltd, this resulted in a drop in demand from the once-reliable Asian market at the start of hostilities in the Eastern bloc.
In a panel discussion at the Argus European Crude Conference in London, Maryamu Idris, Executive Director, Crude and Condensate, NNPC Trading Limited, stated this.
Idris, in a statement today by Mr Femi Soneye, Chief Corporate Communications Officer, NNPC Ltd, said Nigeria’s crude export to India dwindled.
According to Idris, in addition to the substantial price shocks impacting commodity and energy prices globally, the conflict triggered a situation where India, a primary destination for Nigerian grades, increased its appetite for discounted Russian barrels.
This, she said was to the detriment of some Nigerian volumes.
“To illustrate the extent of this shift, Nigeria’s crude exports to India dwindled from approximately 250,000 barrels per day (bpd) in the six months preceding the February 2022 invasion of Ukraine to 194,000 in the subsequent six months afterward.
“And so far, this year, only around 120,000 bpd of Nigerian crude volumes have made their way to India,” she said.
On the other hand, she said Nigerian crude flow to Europe had increased in a bid to fill supply gaps left by the ban on Russian crude.
She explained that six months before the war, 678,000 bpd of Nigerian crude grades went to Europe, compared to 710,000 bpd six months later and 730,000 bpd so far this year.
“This trend makes it evident that Nigerian grades are increasingly becoming a significant component in the post-war palette of European refiners.
“Several Nigerian distillate-rich grades have become a steady preference for many European refiners, given the absence of Russian Urals and diesel.
“Forcados Blend, Escravos Light, Bonga, and Egina appear to be the most popular, and our latest addition — Nembe Crude – fits well into this basket.