BusinessDay 22 Aug 2018
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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.