Venezuela dumps Nigerian oil

Posted by News Express | 4 February 2016 | 4,447 times

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Nigeria has lost a traditional buyer of its once prized crude oil. Venezuela, who used to import from Nigeria, has switched to buying from the United States of America, a report by CNN said.

Venezuela “just bought a bunch of American crude,” the report said. “A ship carrying half a million barrels of oil that was pumped in the U.S. docked at a terminal owned by Venezuela last week, according to oil data research firm ClipperData. The shipment was sent to a facility located on the Dutch island of Curacao in the Caribbean.”

Though Venezuela has the biggest oil reserves in the world put at about 298 billion barrels, the country’s oil is very heavy and hard to refine and then sell to other countries. “Venezuela needs to first mix its heavy oil with lighter types of crude to balance out the quality,” CNN said, quoting Nilofar Saidi, an oil market analyst at ClipperData. Saidi said Venezuela had already been importing lighter types of crude oil from Russia, Angola and Nigeria but added: “It’s just cheaper to bring a tanker of light crude from the U.S. Gulf than to ship it from West Africa or North Africa.”

The report noted that the U.S. officially lifted its 40-year ban on exporting oil to other countries in December, adding: “Despite political tension between the two countries, Venezuela’s state-run oil company, PDVSA, was quick to get in line for American oil.”

Source: News Express

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