West African crude struggles to find buyers as cheaper alternatives flood the market
Nigeria and Angola are grappling with a growing backlog of unsold crude oil as global supply outpaces demand, raising fresh concerns over revenues for Africa’s leading oil producers.
Market analysts say up to 20 million barrels of Nigerian crude and several Angolan cargoes scheduled for December and January loading remain unsold, an unusually high volume for this stage of the trading cycle. The oversupply has already weighed on international prices, pushing Brent crude below $60 per barrel, its lowest level since May.
The situation reflects a broader global surplus, driven by increased output from the Middle East and shifting buying patterns among major importers such as China and India. Reduced demand from Nigeria’s Dangote refinery, which is preparing for maintenance, has further added to the pressure on Nigerian sellers.
Industry watchers warn that unless demand improves, West African producers may be forced to accept deeper discounts or face prolonged revenue strain.
Source: BusinessDay Nigeria