West Africa’s top crude oil producers, including Nigeria and Angola, are facing tough times as they struggle to sell oil scheduled for December and January delivery. Analysts say this is because the world currently has too much oil, creating a global oversupply that is hitting West African producers hard.
Around 20 million barrels of Nigerian crude remain unsold for December and January. Angola also has 5–6 cargoes still available.
Normally, oil from West Africa sells faster, but now buyers are hesitant.
Middle Eastern oil is reaching Asian markets faster and cheaper, which pushes West African medium- and heavy-density crude out. Russia’s oil exports to India remain strong despite Western sanctions. Other countries like Argentina and Brazil are also supplying light- to medium-density oil that competes with West Africa.
Brent crude, a global benchmark, has fallen below $60 per barrel, the lowest since May. The oversupply and lower prices mean West African oil is less attractive to buyers.
The shift in buyers’ preferences highlights the need for West Africa to adapt to changing global energy markets and competitive pricing.
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