The imports of Nigerian crude oil and other West African grades to the United States look set to plunge to nearly zero amid growing shale oil production in the North American country.
The US Atlantic Coast imports of West African crude oil are expected to decline due to harsh arbitrage conditions made difficult by the large premium of ICE Brent futures over West Texas Intermediate, as well as strong premiums for WAF grades. According to S&P Global Platts, Traders tracking these grades exported in the US expect WAF imports to the USAC to fall to virtually zero.
The USAC from May to August imported an average of roughly 24 million barrels a month, of which 8.7 million barrels were from West Africa, data from the Energy Information Administration compiled by S&P Global Platts showed. Nigerian grades tend to make up 40 per cent of WAF imports and Angolan 20 per cent, the rest coming from smaller more regional grades, according to the report.
Source: The Punch