{"id":9467,"date":"2016-06-09T20:23:17","date_gmt":"2016-06-09T20:23:17","guid":{"rendered":"http:\/\/newsroom247.com.ng\/?p=9467"},"modified":"2016-06-09T20:23:17","modified_gmt":"2016-06-09T20:23:17","slug":"hunger-disease-loom-as-foreign-refineries-may-stop-buying-nigerias-oil","status":"publish","type":"post","link":"http:\/\/newsroom247.com.ng\/?p=9467","title":{"rendered":"Hunger, Disease Loom As Foreign Refineries May Stop Buying Nigeria’s Oil"},"content":{"rendered":"

\"crude<\/a>The restive situation in the region may lead to a further
\ndrop in crude oil export as major refineries across the
\nglobe have concluded plans to stop the purchase of the
\ncommodity from Nigeria due to rising uncertainties about
\nthe country meeting up with deliveries.
\nThis is arising from the fact that a number of oil
\ncompanies in Nigeria had declared force majeure of
\ncrude oil export, while a few others had been forced to
\nsuspend or cut production as a result of the bombing of
\noil facilities across the Niger Delta.
\nAccording to data obtained from Reuters , four of
\nNigeria\u2019s oil grades, including the largest stream, Qua
\nIboe, have been under force majeure over the last one
\nmonth.
\nForce majeure is a legal clause that allows companies to
\ncancel or delay deliveries due to unforeseen
\ncircumstances.<\/p>\n

\"NG-[C:G.Vide,B:Allbrand,Wk:2316,Dim:336X280]:Televisions\"
\n<\/a><\/code><\/p>\n

<\/p>\n

The report stated that despite the fact that ExxonMobil,
\nwhich declared force majeure on Qua Iboe in May due to
\nan accident, lifted the declaration last week, the
\nunpredictability is too much for some buyers.
\nThe report further stated that refineries on the United
\nStates\u2019 east coast were beginning to turn away from
\nNigerian crude oil, noting that these same refineries had
\nbeen on a buying spree for Nigerian crude in recent
\nmonths that averaged 240,000 barrels per day (bpd) in
\nApril and May.
\nAs a result, the report said differentials to dated Brent for
\nQua Iboe, Bonny Light and other grades were under
\ndownward pressure, adding that there were several
\nunsold cargoes for June loading.
\nAccording to the report, the reduced demand means
\nNigeria is not benefiting as much as others from a
\nrebound in Brent crude prices at current rate of over $51,
\nwhich is partly driven by its own oil outages, stating that
\nthe reluctance of the refineries to buy Nigeria\u2019s crude oil
\nwas limiting the prices Nigeria could get for its oil, even
\nas there was less of it.<\/p>\n

\"\"<\/a>\"\"<\/p>\n

Specifically, the report stated that India\u2019s HPCL was
\nforced last month to cancel a vessel it chartered to carry
\ntwo million barrels of West African crude due to the Qua
\nIboe force majeure , while India\u2019s state-run Indian Oil
\nCorporation Limited, a major buyer of Nigerian grades
\nover the past year, had stated in its recent tenders that it
\nwould not take grades under force majeure , with Qua
\nIboe remaining off the list of the company.
\nIndonesia\u2019s Pertamina, another frequent buyer, the report
\nadded, had also chosen not to buy Nigerian grades in its
\nrecent tenders, favouring Congolese Coco, Angolan
\nGirassol and Saharan Blend from Algeria instead.
\nThe report quoted oil traders as saying that Pertamina
\nhad shifted its preferences since the violence and
\nuncertainty escalated, while Senior Vice President of the
\ncompany, Daniel Purba, said the company was monitoring
\nNigeria, but noted that the situation was still currently not
\naffecting crude purchasing.
\nCommenting on the development, one oil trader on the
\nUS east coast said: \u201cWhen you plan your crude run
\nmonths in advance and commit buying cargo, you need
\nto be comfortable that the cargo will be there when you
\ngo to lift.”
\nSimilarly, Elizabeth Donnelley, Assistant Head of the
\nAfrica Programme at Chatham House, said: \u201cThe nature
\nof the recently re-emerged militancy in the Niger Delta
\nsuggests it is here to stay for the foreseeable future.\u201d
\nAlso speaking, Olivier Jakob, Managing Director of
\nPetroMatrix in Switzerland, said \u201cnot everybody wants to
\nbe caught up in that, so they will avoid it. The refineries
\nwill walk away from it.\u201d
\nIn a similar development, senior economist at Japan Oil,
\nGas and Metals National Corp, Takayuki Nogami,
\nlamented, yesterday, that the recent fall in the Japanese
\noil market was a result of supply disruptions in Nigeria
\nand Canada, following the Niger Delta militant activities.
\nNogami, in a statement, pointed out that the Japanese
\neconomy was on the double at the first quarter and was
\nslow on consumer spending and weak exports which it
\nexperienced lately.
\nAccording to the statement, a downturn in the US crude
\ninventories was noticed as the company expressed
\nconcern over attacks on Nigeria\u2019s oil industry.<\/p>\n","protected":false},"excerpt":{"rendered":"

The restive situation in the region may lead to a further drop in crude oil export as major refineries across the globe have concluded plans to stop the purchase of the commodity from Nigeria due to rising uncertainties about the country meeting up with deliveries. This is arising from the fact that a number of […]<\/p>\n","protected":false},"author":1,"featured_media":9468,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"ngg_post_thumbnail":0,"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[1],"tags":[941,2122,2123,2124,2125],"class_list":["post-9467","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-exxonmobil","tag-indian-oil-corporation-limited","tag-japan-oil","tag-olivier-jakob","tag-takayuki-nogami"],"jetpack_featured_media_url":"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2016\/06\/crude-oil.jpg","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4oswh-2sH","_links":{"self":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/9467","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9467"}],"version-history":[{"count":1,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/9467\/revisions"}],"predecessor-version":[{"id":9469,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/9467\/revisions\/9469"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/media\/9468"}],"wp:attachment":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9467"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9467"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9467"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}