Glut in Nigeria’s Crude Sales, as 20 Million Barrels Await Buyers

Nigeria is facing fresh challenges in the global oil market as about 20 million barrels of its crude oil scheduled for December and January loading remain unsold, traders have disclosed.

According to market sources quoted by Reuters, the unsold volumes highlight growing difficulties for West African crude producers, including Nigeria and Angola, as they grapple with weak demand and stiff competition from cheaper alternative supplies in the international market.

The report noted that Angola’s December–January loading programme also still had between five and six cargoes available, bringing the total unsold West African crude cargoes to as many as 26 for the two loading months.

Traders and analysts attributed the situation to an oversupplied global oil market, where buyers are increasingly selective due to abundant options from other regions.

Analysts explained that the difficulty in placing Nigerian and Angolan crude is a clear symptom of a broader oil market surplus.

This excess supply has weighed heavily on prices, triggering sell-offs in the international futures market.

As a result, Brent crude fell below $60 per barrel earlier this week, hitting its lowest level since May.

The price drop reflects concerns about oversupply, slowing global demand, and increasing competition among oil-producing nations.

For Nigeria, Africa’s largest oil producer, the development raises concerns about revenue pressures, especially as the country depends heavily on crude oil exports for foreign exchange earnings and budgetary funding. Prolonged difficulty in selling crude cargoes could further strain government finances and impact economic planning.

Market watchers say unless global demand improves or supply tightens, Nigerian crude may continue to face pricing and placement challenges in the coming months, adding to uncertainty in the country’s oil-dependent economy.