Nigeria
has plenty of oil and nowhere to put it. The country produces 2m
barrels per day of a lighter, premium crude that refiners around the
world dislike. After a decade of investment in equipment that can handle
lower quality crudes, refiners feel no need to pay up for lighter
grades.
Nigerian crudes commanded an average $2.50 per barrel premium over
the benchmark Brent price between 2010 and 2014. That spread has
collapsed to 50 cents. This is not just Nigeria’s problem. It could
become one for Opec, as well.
Read the whole article online here: Nigeria: oil excess - FT.com