by Abisoye Shola…….,..
Shell is set to reduce the volume of it's crude oil export for next Month. The company is to export 190,000 barrel per day of Bonny light in June as against 245,0000 barrel for the Month of May. This reduction is attributed to lack of demand and the agreement by OPEC+ members to cut down production. The Shell's loading plan for both the Nigerian Bonny Light and Bonga crude, showed that the former set to fall sharply in June to 190,000 barrels per day (bpd) from 245,000 planned for May. This is an indication that the company's Loading plans have been disrupted as as a result of the protracted negotiations between the Nigeria National Petroleum Corporation (NNPC) and the international majors over the cutting of output following a pact by OPEC+ producer countries to limit supplies to prop up global oil prices, effective from May 1. One Bonny Light cargo from Shell originally schedule for June 1-2 export was delayed to June 7-8. Volumes for the four major grades are set to plunge to 602,000 bpd from 828,000 originally planned in May, though those volumes, along with those of other grades, have been reduced because of downward revisions to the May schedule. The June exports of the grades are more than a third lower than volumes planned for March, circulated before lockdowns to contain the outbreak of the novel coronavirus went widely into force. Market sources linked the fall to the producer supply cut pact and to record low prices for West African grades. A rally in Brent crude prices this week from more than two-decade lows below $20, combined with major producer. Many sellers of West African crude remained pessimistic, however, saying an overly sudden rise to the dated Brent benchmark from which West African grades are priced could undermine the contango market structure, which was one of the few factors buoying sales.