Nigeria’s export programme for crude oil in the months of May and June released on Friday shows lower volumes in line with unprecedented output cuts by producers and a lack of demand, Reuters has reported.
Nigeria had in April agreed to production cuts along with other OPEC+ members beginning from May 1 as part of measures to shore up the price oil crude following weak demand due to the Covid-19 pandemic.
According to Reuters, Royal Dutch Shell circulated its export schedule for June loadings of Nigerian Bonny Light and Bonga crude, with the
former set to fall sharply in June to 190,000 barrels per day (bpd) from 245,000 planned for May.
The report stated that loading plans had been disrupted as the government haggled with international oil companies on cutting output following the OPEC+ agreement,
One Bonny Light cargo from Shell originally scheduled for June 1-2 export was delayed for June 7-8.
Reuters said volumes for the four major grades it tracked were set to plunge to 602,000 bpd from 828,000 originally planned in May, although those volumes, along with those of other grades, have been reduced because of downward revisions to the May schedule.
“The June exports of the grades are more than a third lower than volumes planned for March, circulated before lockdowns to contain the outbreak of the novel coronavirus went widely into force.
Market sources linked the fall to the producer supply cut pact and to record low prices for West African grades”, the agency reported.