The Oil and Gas sectors of countries such as Nigeria, Angola, Brazil and Iraq have received a boom as large orders for crude oil imports has been made by the United States refineries, with the orders of May volumes doubling that of April levels according to Refinitiv Eikon data.
According to reports, oil exports by these countries to the United States spiked as oil supply from Iran and Venezuela dried up.
Nigeria and Angola, too, are increasing their shipments to the US at a combined 420,000 barrels per day (bpd), according to Refinitiv data, this is an increase from 19,000 bpd in February and up from 182,600 bpd in January.
The expected cargo constitutes 11 tankers with about 600,000 bpd the cargoes will include 11 tankers carrying of Iraqi crude; the most from that country in a year, all these plus the quantity expected from the other nations amount to a total 1.23 million cargoes per day directed to the catering of the increasing oil demand in the US.
The major reason behind the unusual order for crude oil imports can be attributed to the cuts in oil imports from the southeastern country, Iran, and the southwest Asian country, Iraq coupled with OPEC’s 1.2 million barrel per day cut.
Iran has however expressed its displeasure at OPEC member taking over its oil supply customer with its statement,
“Saudi Arabia and UAE will draw death and collapse of OPEC, should they fill the void left by Iranian oil barrels being restricted in the market, chastising OPEC members who wielded oil as a weapon,”.
Despite the blow dealt Venezuela by the oil supply cut action, the South American nation maintains that oils exports are still on the high side.
However, a statement made by Samir Manfani, co-founder of Tanker Trackers,
“what you get is a large parking lot of floating storage, actual exports are now sub-one million barrels per day,“.
Several other reports have pointed out that Venezuela is experiencing a decline in exports as cases of crude oil have found a home on some shores in the country.
The dwindling oil prices in conjunction with a break in order from the US has dealt a blow to the Nigerian economy as the oil industry is the mainstay.
Nigeria and Angola are sure to experience a breath of fresh air as they are set to deliver 420,000 bpd this month.
Also, another 1million barrels from Nigeria and Myrtos, and 206,000bpd of Brazilian crude are to be supplied this month.