This is definitely not the best of times for Nigeria as the slide in crude oil prices continue unabated inspite of efforts by the Nigerian National Petroleum Corporation (NNPC) to buoy the price of crude with aim to attract buyers. The NNPC released its crude official selling prices (OSPs) for May, cutting values for all its grades from the decades-lows in April.

Reports say the state-owned oil company is set to sell all Nigerian grades for May at discounts to North Sea Dated, some of the lighter ones by upwards of $5/bl. At current Dated levels, this means some Nigerian grades will sell for less than $10/bl next month.

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The report indicated that the price cuts by the corporation were informed by the necessity to forestall huge losses as the country lacks onshore storage facilities and desperately needs to sell to willing buyers.

An analysis of the crude price cuts indicated that the NNPC cuts prices for key grades by between 47¢/bl and 98¢/bl on the month, although market participants had expected larger cuts for the country’s main streams.

The report further stated: “NNPC cut Qua Iboe’s price by 82¢/bl from April to a discount to North Sea Dated of $3.92/bl, and cut the price of Forcados by 91¢/bl on the month to a discount of $3.91/bl to the benchmark.

“It made 66¢/bl cuts to Bonny Light and Brass River, to discounts of $3.95/bl and $3.82/bl, respectively.

“Among the bigger streams NNPC again priced Egina the highest, at a $2.49/bl discount to Dated. NNPC considers Egina a condensate, even though its gravity suggests it is crude.

“Among lighter grades NNPC cut the price of Agbami and Akpo by $1.30/bl and $2.38/bl to $5.30/bl and $6.38/bl below the benchmark respectively, and cut the price of heavy sweet Eremor by $3.53/bl to a discount of $7.53/bl, the lowest value for the 33 grades NNPC listed.

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“NNPC’s cut to the highly acidic medium-sweet Usan was 53¢/bl, to a discount of $4.53/bl.

“The highest-priced grades remained medium and light-sweet EA Blend and Okwuibome at $1.51/bl and $1.69/bl discounts, respectively”, the report added

Nigeria’s state-owned oil corporation usually publishes its official selling prices (OSPs) for the upcoming month between the 15th and 25th of the preceding month.

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The OSPs for April-loading cargoes were published on 23 March, while the March and February OSPs were issued on 19 February and 16 January, respectively.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry