Market Turning to West African Oil on the Verge of Sanctions on Iranian Oil
As oil companies in Asia seek alternative sources of oil due to US sanctions on Iran, shipments of oil from West Africa to Asia are reaching their highest levels.
According to Reuters’ oil exchanges data calculations on Wednesday, October 3rd, oil shipments from West African countries - Angola, Nigeria, the Republic of the Congo, Ghana, and Equatorial Guinea to Asia will reach 2.52 million barrels per day during October, which is equal to 75% of the total daily production of these countries.
In the past month, September, the amount of oil shipped to Asia from these countries was 2.27 million barrels a day, accounting for 70% of the total oil production in the region.
According to the available statistics, China, the largest customer of West African oil, is expected to import 1.96 million barrels of oil from these countries each day, which is a significant increase compared to 1.5 million barrels last month.
Other attempts by Iranian oil buyers to find alternative sources after the November 4th, when US oil sanctions against Iran begins, has also increased the market’s interest in West African oil.
The Energy Aspects Consultancy told Reuters that a new appetite for West African oil has been created in the market due to anxious purchases by Chinese oil companies. They also said that West Africa's oil exports to India have dropped slightly, while an oil shipment has gone to South Korea.