US Triples Imports of Nigerian Crude Oil
By Dipo Olowookere
The volume of crude oil bought from Nigeria by the United States tripled in 2016, latest data from US Energy information Administration has shown.
According to the report released by the American agency, the US bought a total of 76.9 million barrels of Nigeria’s oil last year.
This is in sharp contrast to the volume purchased from the West African biggest economy in 2015, which stood at 19.9 million barrels.
But the recent increase in the US imports of Nigerian crude is being threatened by shale oil production.
Recall that for the first time in decades, the US did not purchase any barrel of crude oil from Nigeria in July and August 2014.
When global oil prices began to drop in 2014 from a peak of $115 per barrel, Nigeria witnessed a further drop in the US imports of its crude from 87.4 million barrels in 2013 to a record of 21.2 million barrels.
This gave Nigeria concerns and efforts were made to strengthen ties between the two countries.
Instead of patronising Nigeria’s crude, the United States went elsewhere until relations were enhanced again by the administration of President Muhammadu Buhari.