US cuts oil imports from Nigeria by 11.67m barrels
The United States has cut its imports of Nigerian crude oil to 9.37 million barrels in the first five months of this year, 11.67 million barrels lower than what it bought in the same period of 2019, according to energymixreport.com.
The US imported 21.03 million barrels of Nigeria crude from January to May 2019, according to recent data obtained from the US Energy Information Administration.
The highest monthly volume of Nigerian crude purchased by the North American country so far this year was 2.12 million barrels, compared to 11.78 million barrels in 2019, according to Punch.ng.
Its purchases plunged by 63.03 per cent in the first quarter of 2020 to 5.53 million barrels, compared to the last quarter of 2019 when it bought 15.07 million barrels from Nigeria.
The US bought 1.92 million barrels in January; 1.93 million barrels in February; 1.68 million barrels in March; 1.70 million barrels in April, and 2.12 million barrels in May, according to the EIA. The US has significantly reduced imports of Nigerian crude oil in the past few years as the oil produced in its shale operations is similar to the light sweet Nigerian crude.
Following the coronavirus-induced crash in oil prices and demand, Nigeria has been struggling to sell its crude oil cargoes. Prior to the lockdowns and collapse in crude oil demand caused by coronavirus crisis, the rise of US shale oil was already proving uniquely challenging for Nigeria.
Booming production from shale drastically cut Nigerian exports to the US – once the destination for about 40 per cent to 50 per cent of the country’s cargoes.
“The United States produces a large share of the petroleum it consumes, but it uses imports to help supply domestic and international markets,” the EIA said.
According to the EIA, some of the imported petroleum may be stored and subsequently exported. It also said the country imported about 9.10 million bpd of petroleum in 2019 from about 90 countries.