China and India, Nigeria’s two largest crude oil consumers, are planning to negotiate lower rates for Russian oil.
India is thought to be requesting a discount price of less than $70 a barrel from Russia.
As a result of Russia’s invasion of Ukraine, Europe is considering banning Russian oil.
OPEC Secretary-General Mohammad Barkindo, speaking at the Offshore Technology Conference in Houston on Wednesday, emphasized that Russia’s 7 million barrels per day oil market supply could not be replaced.
Following the ongoing war on Ukraine, the European Commission advocated a complete ban on Russian crude oil.
On Thursday, tensions rose as calls for the ban grew louder.
On Thursday, tensions rose as calls for the ban grew louder.
Despite the fact that the proposed ban has pushed oil prices above $108 per barrel, reports claim that countries are starting to negotiate discounts as low as $30 per barrel, with India and China the most recent negotiators for $70 per barrel and below to compensate for logistics, financing, and sanctions issues.
Nigeria will lose its major buyers if India and China succeed in getting Russia to sell at reduced prices. Starting in May, India might purchase up to 15 million barrels of Russian oil.
According to the United Nations COMTRADE database on international commerce, Nigeria’s crude oil exports to India were valued at $4.56 billion in 2020, while shipments to China were valued at $1.02 billion.
Brent rose to $112.60 per barrel at 10.08 a.m. (Nigerian time) on Friday, up $1.54 or 1.39 percent from its previous close of around $110.
Ursula von der Leyen, President of the European Commission, stated in the European Parliament that the Commission is proposing a complete embargo on Russian oil imports beginning at the end of the year as part of the sixth package of penalties on Russia for its invasion of Ukraine.
“Let’s be clear: it’s not going to be easy. Some EU members are heavily reliant on Russian oil. But all we have to do now is work on it. We now recommend that Russian oil be banned. “All Russian oil, seaborne and pipeline, crude and refined, will be completely banned,” von der Leyen added.
“We will ensure that Russian oil is phased out in a systematic manner, allowing us and our allies to secure alternate supply lines and reduce the impact on global markets.” This is why, within six months, we will phase out Russian crude oil supplies, and refined goods by the end of the year,” stated the Commission’s president.
Nigeria is now struggling to reach its 1.7 million barrels per day OPEC output target. According to OPEC data, the country’s current output is roughly 1.2 million barrels per day.
