21.08.2018 Views

BusinessDay 22 Aug 2018

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

WEST AFRICA<br />

ENERGY intelligence<br />

oil gas power<br />

Wednesday <strong>22</strong> <strong>Aug</strong>ust <strong>2018</strong><br />

C002D5556<br />

BUSINESS DAY<br />

POLICY<br />

Saudi Aramco’s<br />

strategic<br />

positioning holds<br />

lessons for NNPC<br />

Page 5<br />

finance people<br />

appointments<br />

L-R: Layi Fatona, managing director, ND Western; Austin Avuru, MD/CEO, Seplat, Godswin Ihetu, out-going chairman, Petroleum Club and Tunde Afolabi, incoming<br />

chairman, Petroleum Club at the annual general meeting of the club in Lagos recently.<br />

Debrief<br />

When will Nigeria’s unsold<br />

Libyan crude still<br />

attracting hefty<br />

freight premiums<br />

Page 6<br />

OPEC weekly basket price<br />

DAY<br />

PRICE<br />

17/8/18 70.36<br />

10/8/18 71.88<br />

3/8/18 72.61<br />

27/7/18 72.81<br />

20/7/18 71.06<br />

Source: OPEC<br />

crude head for China?<br />

FRANK UZUEGBUNAM<br />

China’s biggest oil<br />

suppliers are the<br />

Middle East, Russia<br />

and West Africa but<br />

the United States<br />

has also become an important<br />

global supplier since it opened<br />

up its market for exports in<br />

2016. Right now, Chinese oil<br />

importers are shying away from<br />

buying US crude as they fear<br />

Beijing might soon exclude the<br />

commodity from its tariff list in<br />

a trade dispute between the two<br />

countries.<br />

Not a single tanker has loaded<br />

crude oil from the United<br />

States bound for China since<br />

the start of <strong>Aug</strong>ust, Thomson<br />

Reuters Eikon ship tracking<br />

data showed, compared with<br />

about 300,000 barrels per day<br />

(bpd) in June and July.<br />

It takes an average of 6<br />

months for crude imports from<br />

US to arrive China so the impact<br />

of the Asian country’s stoppage<br />

of oil imports from Trump’s<br />

country may not be reflecting in<br />

the market fundamentals now.<br />

Otherwise, there should be<br />

some impact on Nigeria’s loading<br />

programme now.<br />

Current loading programmes<br />

for Nigeria’s largest<br />

streams show an overhang of<br />

some 30 cargoes persisted from<br />

an originally planned 59 cargoes.<br />

Nigerian differentials has<br />

fallen enough to whittle down<br />

an overhang of unsold cargoes.<br />

Forcados and Bonny Light<br />

were offered at the same levels<br />

around $1.30 above dated Brent<br />

and $1.10 - 1.20 a barrel,<br />

October loading programmes<br />

for Bonny Light,<br />

Qua Iboe and Forcados show<br />

Qua Iboe will be down sharply<br />

at 183,000 bpd down from<br />

253,000 bpd in September.<br />

Bonny Light crude exports<br />

were set at 153,<strong>22</strong>6 barrels<br />

per day (bpd) for October on<br />

five cargoes, in line with September.<br />

Exports of Forcados<br />

crude oil set at 208,161 bpd<br />

for October on nine cargoes of<br />

different sizes, down slightly<br />

from September. The Bonga<br />

schedule has six cargoes for<br />

October.<br />

Can China snap these Nigeria’s<br />

crude overhang to replace<br />

US oil? As the face-off with US<br />

intensifies, China has been<br />

turning to the Middle East, West<br />

Africa and Latin America, according<br />

to shipping data and<br />

traders but how much of that<br />

extra demand is coming to Nigeria<br />

cannot be determined at<br />

this point.<br />

Last year, China imported an<br />

average of 1.48 million barrels<br />

a day from West Africa mainly<br />

from Angola and Nigeria.

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!