Indications emerged yesterday that the sale of Nigeria crude oil in the international market is currently facing challenges which may lead to lingering glut due to surging production of United States shale crude, which experts say has similar geological properties.

According to loading programmes compiled by Bloomberg, about 25 out of 60 Nigerian cargoes scheduled for October export remain unsold, while trading will switch to November shipments next week when new programmes are released.

Another factor said to be impacting negatively on the country’s crude sales is the stoppage of crude imports from Nigeria by the US, which used to be the highest importer of Nigeria’s crude.

Also, some other traditional buyers of the country’s crude, such as Taiwan’s CPC Corp., have turned to American grades. Similarly other trading partners such as India are said to have, in recent times, reduced the volume of crude they import from Nigeria.

Source: Leadership