Russia-Ukraine Crisis: Nigeria’s Crude Demand Rises In Europe – NNPC

The lingering Russia- Ukraine crisis has raised the demand for Nigeria’s crude oil grade into the European markets.

The hostilities in the Eastern bloc also caused a dip in demand for Nigeria’s oil in the Asian market, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has said.

director, Crude & Condensate, NNPC Trading Limited, Maryamu Idris, said in a panel presentation at the Argus European Crude Conference in London, that in addition to the substantial price shocks impacting commodity and energy prices globally, the conflict between Russia and Ukraine has triggered a situation where India, a primary destination for Nigerian grades, increased its appetite for discounted Russian barrels to the detriment of some Nigerian volumes.

Providing insight into how the lingering conflict between Russia and Ukraine has impacted Nigerian crude oil inflows in the international oil market, Idris said, “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 afterwards. 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 noted that the Nigerian crude flow to Europe has increased in a bid to fill supply gaps left by the ban on Russian crude, pointing out 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. 

The lingering Russia- Ukraine crisis has raised the demand for Nigeria’s crude oil grade into the European markets.

The hostilities in the Eastern bloc also caused a dip in demand for Nigeria’s oil in the Asian market, the Nigerian National Petroleum Company Limited (NNPC Ltd.) has said.

Executive director, Crude & Condensate, NNPC Trading Limited, Maryamu Idris, said in a panel presentation at the Argus European Crude Conference in London, that in addition to the substantial price shocks impacting commodity and energy prices globally, the conflict between Russia and Ukraine has triggered a situation where India, a primary destination for Nigerian grades, increased its appetite for discounted Russian barrels to the detriment of some Nigerian volumes.

Providing insight into how the lingering conflict between Russia and Ukraine has impacted Nigerian crude oil inflows in the international oil market, Idris said, “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 afterwards. 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 noted that the Nigerian crude flow to Europe has increased in a bid to fill supply gaps left by the ban on Russian crude, pointing out 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. 

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top