LONDON — Nigerian and Angolan crude oil is struggling to find buyers as a growing global supply surplus and cheaper alternative barrels crowd the market, leaving an unusually large volume of West African cargoes unsold, traders and analysts said.
As much as 40 million barrels of Nigerian and Angolan oil were estimated to be without buyers earlier this week, an unusually high level for late December, according to market participants. The backlog reflects intensifying competition from Middle Eastern, Russian and Latin American supplies, as well as softer demand in key Asian markets.
West African sellers are struggling to place December- and January-loading cargoes as buyers turn to cheaper or more logistically attractive options, Reuters reported, citing traders and analysts.
“The overhang of West African cargoes partly reflects the broader global crude supply surplus emerging in the first quarter,” said Victoria Grabenwoger, an analyst at data firm Kpler.
Traders said about 20 million barrels of Nigerian crude scheduled for December and January loading remained unsold as of Thursday, while Angola still had five to six cargoes available from its December-January program. The unsold volumes have slowed the start of trading for February cargoes, despite Angola already releasing its loading schedules and term nominations.
Such a buildup is unusual for the region, where crude typically trades roughly two months ahead. Analysts said the backlog has been exacerbated by aggressive pricing from Middle Eastern producers.
Supplies from the Middle East are displacing medium and heavy West African grades in Asia after producers cut official selling prices for January cargoes. Shorter shipping times have also made Middle Eastern crude more attractive, analysts said.
India’s continued imports of Russian oil, despite tighter Western sanctions, have further squeezed demand for medium-heavy West African grades. At the same time, lighter West African crudes are struggling to compete with supplies from Argentina and Brazil, traders said.
Nigeria has also been forced to market more oil following reduced intake by the Dangote refinery, Africa’s largest, with capacity of 650,000 barrels per day. The refinery is expected to undergo maintenance in January, cutting its crude imports.
“That leaves more Nigerian barrels looking for homes in an already saturated market,” Grabenwoger said.
Analysts said unless demand picks up or producers curb supply, West African crudes could continue to face pricing pressure into early 2026.
