BREXIT: UK Abandons Nigeria, Turns To US For Crude
Brexit is scheduled for March 29 and it appears the UK is beginning to point to their direction of who they will likely increase trade relations with.
Before now, the UK used to import most of its crude oil from Nigeria but for the first time in 2015, its crude oil exports from the United States overtook supplies from Nigeria and other countries.
In January, the US supplied the equivalent of almost one in every four barrels of crude processed by UK oil refineries, or 264,000 barrels per day, illustrating the outsized role American oil now has in Britain’s energy mix, according to the Financial Times report on Wednesday.
That level was more than Norway, Russia, Nigeria or Algeria, according to data from the cargo-tracking company Kpler, which have all been major suppliers to the UK in recent years.
While monthly export volumes can be volatile, the rising volume of US crude heading to the UK is part of a trend since Washington lifted widespread restrictions on exports in 2015.
In 2018, the average volume of US crude exported to the UK doubled to 160,000 bpd, second only to Norway over the course of the year and up from less than 20,000 bpd in 2016.
Nigeria's trade relations with the UK was estimated at 4.2 billion pounds in 2018. Experts projects a significant increase after Brexit, as a result of increased trade between the UK and Nigeria.
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