After buyers reject 50 cargoes, Nigeria cuts crude prices to combat low sales

Nigeria has marked down the prices of different grades of its crude in an effort to stimulate sales and clear glut after buyers rejected more than 50 cargoes of its crude in preference for low-priced substitutes.

The decision was taken in the aftermath of the coronavirus outbreak and the record glut in the global oil market, where a fierce price war between Saudi Arabia and Russia had opened a floodgate of oil in varying volumes, grades and prices from all around the world.

The country’s May loading arrangement made public Monday, revealed increased crude oil volumes compared with the quantity posted the month before.

Read also: Nigerians spent N2.64tn of their income on petrol in 13 months —NNPC

Bonny Light and Forcados were upped and scheduled to load 245,000 barrels per day (bpd), Qua Iboe 215,000 bpd and Bonga 123,000.

Usan and Yoho have been timed to load two cargoes each, Brass River and Agbami five cargoes each while Egina and Amenam will load six and four cargoes in that order.

“Late on Friday, NNPC cut its April Official Selling Prices (OSP) for Bonny Light and Qua Iboe by $5 a barrel to date Brent minus $3.29 and minus $3.10 per barrel, respectively,” Reuters said.

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