Nigeria’s Crude Still Sought After By Buyers-Kyari

The Group Managing Director(GMD), Nigerian National Petroleum Corporation(NNPC),  Mele Kyari, has said despite the glut in the global crude oil market, Nigeria’s oil is still being sought after by buyers.

According to Kyari, though some vessels carrying Nigerian crude were stranded recently, the commodity was not rejected by buyers.

He added that  buyers currently preferred to  buy the cheap crude available and take them into storage.

 “There is no challenge in that. The buyers have choices now. Choice of quality and choice that is associated with distance. These two factors determine which crude oil consumers buy,” he said.

The GMD stated that the major  market for Nigeria’s crude was  Europe and followed by Asia, particularly India.
 

“So the way to gauge this is when your buyers don’t return the crude after six days of purchase. For by contract, after allocation of a cargo, the buyer is supposed to come back to you within six days and say I cannot take this. There is a legitimate right to do that.

“But none of our partners have come to tell us that they cannot take our crude and it is way past the six days. This means that they have found value for this crude.”

He however added that  the number of stranded vessels had reduced considerably.