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About 20 million barrels of Nigerian crude oil for December–January loading remain without buyers amid weak global demand.
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Excess West African supply pushes Brent crude below $60 per barrel, its lowest level since May.
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Persistent unsold cargoes highlight pressure on Nigeria’s oil revenue and budget projections.
Nigeria’s crude oil is facing mounting challenges in the global market, with about 20 million barrels scheduled for December and January loading still unsold as of Thursday, according to traders.
A report by Reuters noted that West African producers, including Nigeria and Angola, are struggling to attract buyers for up to 26 cargoes due to stiff competition from cheaper and more readily available alternative supplies.
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Analysts said the growing volume of unsold Nigerian and Angolan crude reflects a wider global oil surplus, which has triggered selling pressure in the futures market and pushed Brent crude below $60 per barrel, its lowest level since May.
An analyst at energy analytics firm Kpler, Victoria Grabenwoger, said the overhang of West African crude cargoes mirrors the broader supply surplus emerging in the first quarter of the year, slowing trading activities for February cargoes despite loading schedules already being released.
Market watchers described the situation as unusual, noting that West African crude typically trades about two months ahead. Estimates earlier in the week suggested total unsold volumes from Nigeria and Angola could be as high as 40 million barrels.
OilX analyst Francisco Gutierrez attributed the weak demand partly to seasonal factors and changing buying patterns driven by freight costs and alternative supply sources. He added that Angola’s January crude trade is about 20 per cent behind its long-term average, largely due to China switching to cheaper or closer crude grades.
Supplies from the Middle East are increasingly displacing medium and heavy West African crudes in Asia, aided by lower official selling prices and shorter shipping distances. Meanwhile, India’s continued imports of Russian crude and growing supplies from Brazil and Argentina are further squeezing demand for Nigerian grades.
The development raises fresh concerns for Nigeria’s economy, as the Budget Office of the Federation recently reported a 22 per cent drop in oil revenue, with gross earnings falling short of budget expectations.
