Europe’s Aug exports to Nigeria fall

Europe’s base oils exports to Nigeria fell in August, coinciding with an even steeper drop in shipments from the US to the West African country.

The synchronised slowdown cut total shipments to Nigeria from the two markets to the lowest in a year.

Exports of 7,620t from Europe in August fell from 10,520t the previous month, government data showed.

Exports would have been even lower if not for a jump in shipments from the UK in August to a four-month high of more than 3,500t.

The drop in supplies cut total exports to Nigeria to 67,380t in the first eight months of the year. The volume was down 16pc from almost 80,000t during the same period last year.

The fall in shipments mostly reflected a slump in supplies from Italy.

There were no cargo shipments from that country to Nigeria in August for a thirteenth straight month even after the restart of a Group I base oils unit. The unit had been offline since November 2021.

The drop in supplies from Europe coincided with a fall in shipments from Russia. The two markets are the key sources of Nigeria’s base oils supplies.

The country’s buyers instead covered more of their requirements with supplies from the US.

The move triggered a surge in base oils exports from the US to Nigeria this year.

Total base oils exports to Nigeria from Europe and US combined came to 167,150t in the first eight months of the year. Supplies from the US accounted for some 60pc of the volume.

The US share was up from 1pc of total exports from the two markets to Nigeria during the same period last year.

The boost from US supplies paused in August, with shipments almost halting.

The drop in supplies cut total exports from US and Europe to Nigeria to less than 8,000t in August.

The volume was down from typical shipments of more than 20,000 t/month over the past year and the lowest since August 2021.

The drop in shipments coincided with a slowdown in demand in Nigeria during the rainy season. Payment issues also slowed activity.

Falling base oils prices and the prospect of rising surplus supply in Europe added to buyers’ lack of urgency to lock in more shipments.

The trend suggested easing concern among Nigerian buyers about securing sufficient supplies and rising concern among overseas sellers about the ability and willingness of buyers to absorb more supplies.