Nigerian Bonny Light Crude Approaches $70 as India Increases Purchases
Nigerian crude prices have risen following Ukraine’s intensified attacks on Russia, raising concerns about potential Russian oil supply disruptions. Nigerian Bonny Light crude oil reached approximately $70 per barrel as Africa’s leading producer exceeded its OPEC+ quota, with prices recovering after weeks of selling pressure.
Indian refiners have purchased two million barrels of Nigerian crude for September and October delivery. India, now the largest consumer of Russian oil accounting for 40% of its total imports, finds Nigerian crude grades ideal for its refineries due to their low sulfur content. However, Indian buyers now face competition from Nigeria’s Dangote Refinery.
Nigeria’s crude oil production averaged 1.5 million barrels per day in July, surpassing its OPEC+ quota for the second consecutive month according to OPEC’s August Monthly Oil Market Report. This increase resulted from improved security conditions in the Niger Delta and recovering upstream investment, bolstered by asset transfers from foreign oil companies to local operators.
The $20 billion Dangote Refinery, with capacity exceeding Europe’s largest refineries, currently produces naphtha, diesel, gasoline, and aviation fuel. According to Devakumar Edwin, Dangote Industries vice-president, the refinery will purchase all its crude from the Nigerian market by year-end, shifting from previous sourcing from the US, Brazil, Equatorial Guinea, Angola, and Ghana.
Source: nairametrics.com
