Yesterday, oil price depreciated to $111 per barrel, going down -0.68% as Russia and European Union readjust to the restriction placed on the Russia.
Reports say Russia is luring buyers for its oil products from Nigeria with its cheaper price, as Vladimir Putin is reportedly planning to replace European market with petroleum products from Nigeria and other African nations before EU embargo begins to kick in.
A research and data firm, Refinitiv, said in a report that export of diesel into the African continent from Russia had increased from 0.8 million to one million tonnes, while gasoline and naphtha importation by nations from the region was up to 200,000 tonnes.
Aside from Nigeria seeing an increase in its inflow of Russian oil products, other countries mentioned are Morocco, Sudan, and Ivory Coast, while Senegal and Togo are receiving huge volumes of diesel.
Before now, western countries had been reducing their demand for Russia’s oil in the wake of Ukraine invasion by Putin.
At the end of 2022, EU said its members will completely pull out from any purchases of Russian oil and gas.
Putin is looking for new buyers, and Nigeria is on the exportation list of Russia in order to prevent a dip in production output, which would cut earnings from war, and possibly affect the financing of the war against Ukraine.
Russia, is however, looking beyond the Nigerian and African market, pushing its oil products into Middle East and Asia, despite the latter having enough oil to sell out.
The reason for the increase in Putin’s oil is related to its low cost compared to what’s attainable in other markets.
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