Paragraph 1: Sluggish Demand for Nigerian Crude in April Trading Cycle
Nigerian crude oil grades experienced weak demand during the April trading cycle, primarily due to the abundant availability and lower prices of alternative crudes. US West Texas Intermediate (WTI), Caspian CPC Blend, and other Mediterranean grades presented more attractive options for European buyers, putting pressure on Nigerian exports. This resulted in a significant carryover of unsold Nigerian cargoes into the May trading cycle, with an estimated 15 April-loading shipments still seeking buyers. The competitive landscape of the global crude oil market contributed to the subdued demand for Nigerian grades, highlighting the importance of pricing and alternative supply sources for refinery operations.
Paragraph 2: Introduction of New Nigerian Crude Grade "Obodo"
Amidst the challenging market conditions, Nigeria introduced a new medium sweet crude grade named Obodo. With a gravity of 27.65° API and a sulfur content of 0.05%, Obodo is expected to compete with other medium sweet crudes, particularly Nigerian Bonga. While details on production levels remain limited, market analysts anticipate Obodo to be priced similarly to Bonga. Continental Oil & Gas, a Nigerian independent company, will produce Obodo from the onshore oil block OML 150 in the Niger Delta region. The state-owned Nigerian National Petroleum Company (NNPC) will handle the marketing and distribution of this new crude grade.
Paragraph 3: Expanding Nigeria’s Medium Sweet Crude Portfolio
Obodo’s introduction marks the latest addition to Nigeria’s expanding repertoire of medium sweet crude grades. Following the relaunch of Utapate in 2024 and the launch of Nembe in 2023, Obodo further diversifies Nigeria’s crude offerings. These medium sweet grades, including established names like Forcados, Escravos, and Bonga, have historically found a strong market in Europe, the largest consumer of Nigerian crude. With the anticipated completion of seasonal refinery maintenance in Europe by late April and early May, Obodo is poised to attract significant interest from European refiners seeking medium sweet crude options.
Paragraph 4: Nigeria’s Upstream Production Growth Targets
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has announced ambitious plans to boost the country’s liquids output by 1.07 million barrels per day (b/d) by December 2026. This initiative aims to attract investment in Nigerian oil blocks through joint ventures, production-sharing contracts, and sole risk contracts. However, Nigeria faces the challenge of mobilizing upstream investment and has consistently fallen short of previous, less ambitious production targets. Recent data reveals a 4.5% decline in Nigeria’s crude production to 1.47 million b/d in February, slightly below its OPEC+ quota of 1.5 million b/d. Securing the necessary investments and achieving these production goals will be crucial for Nigeria’s oil sector growth.
Paragraph 5: Port Harcourt Refinery’s Crude Allocation and Operational Updates
Nigeria’s 210,000 b/d Port Harcourt refinery has been allocated three cargoes of domestic light sweet Bonny Light crude for April-May. This suggests a resolution to the potential supply disruptions experienced in February and March. The allocation comprises a 950,000-barrel cargo loading over April 5-6, and two 475,000-barrel shipments loading over April 22-23 and May 1-2, all handled by NNPC. While earlier reports indicated cancelled allocations due to operational issues at the refinery, a subsequent report noted a planned delivery of Bonny Light prior to a brief disruption caused by a fire on the Trans Niger Pipeline (TNP). The pipeline’s operator, the Renaissance Africa consortium, confirmed the restoration of flows on March 19th.
Paragraph 6: Bonny Light Loadings and Port Harcourt Refinery’s Rehabilitation
Total loadings of Bonny Light crude have been adjusted to 209,000 b/d for April, distributed across seven cargoes, and 202,000 b/d for May, also across seven cargoes. The Port Harcourt refinery, originally designed to process Bonny Light, consists of two refineries. Currently, only one 60,000 b/d section has undergone complete rehabilitation. The refinery’s operational status and crude allocations remain crucial elements in Nigeria’s downstream sector, impacting both domestic refining capacity and the export market for Bonny Light crude.
