Nigeria's Crude Gains from Saudi Supply Troubles as European Refiners Scramble
Nigeria's crude oil is gaining popularity as Saudi Arabia's oil supply troubles ripple through European refining hubs. The kingdom has told some European customers that crude cargoes scheduled to load in late September could be cancelled or delayed after drone attacks forced the shutdown of its East-West pipelines.
The pipeline, which carries 7 million barrels a day from eastern oil fields to the Red Sea port of Yanbu, had been one of Riyadh's main workarounds for avoiding the Strait of Hormuz. Saudi Aramco has declined to comment on the reported cancellations.
As a result, European refiners are turning to alternative suppliers, and Nigerian crude is benefiting from the shortage. Bonny Light, Nigeria's benchmark light sweet export stream, traded above $115 a barrel over the weekend, tracking the broader move in dated-Brent-linked benchmarks.