Delays dampen Nigerian Crude Oil demand

Oil futures were on track for their biggest annual gains since 2009 despite intraday losses, aided by OPEC's agreement to cut production from early next year.

Still, demand for West African crude in spot trading was limited by holidays across Europe and uncertain demand in Asia. Gains in U.S. crude stocks showed by the U.S. Energy Information Administration this week also raised doubts over western demand for African oil in the near term.

NIGERIA

  • No fresh trading was reported despite some cargoes loading Jan. 15-20 being available for purchase.
  • Loading delays on ExxonMobil's crude exports, which included Qua Iboe and Erha, impinged on demand as buyers worried about demurrage costs.
  • The bulk of the delays were because of strikes this month over layoffs by oil companies, traders told Reuters.

 

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