Rapid increases in U.S. shale oil output are putting pressure on Africa’s biggest crude producers, noted Rolake Akinkugbe-Filani, Senior Vice President of Nigeria’s FBNQuest Merchant Bank. In an article published by The Africa Report on September 13, she noted that African suppliers had lost ground to U.S.-based competitors in several key markets.
African oil exporters have traditionally targeted Europe and have been making inroads into Asia, where demand for light sweet crude is rising, Akinkugbe-Filani said. Earlier this month, though, Angola found itself with up to 15 unsold October cargoes and had to cut prices for Dalia grade crude in order to find buyers, she said.
The problem is likely to get bigger unless African oil producers find customers closer to home, she argued. “Assuming the end goal is to achieve a balanced energy mix, a sustainable energy future for Africa has to involve the creation of local and regional markets in order for the continent to weather global oil market changes,” she wrote.