|Nigerian Oil Flows to China|
|by Tom McGregor||Thu, Jun 14, 2012, 07:16 PM|
BEIJING: As darkness looms over the economies of the U.S. and Europe, African leaders are pondering the damage done to their own nations and considering Chinese solutions. Africa’s largest oil producer, Nigeria, a geopolitical pivot of the continent’s western rim, is doing more business in China.
The Asia Times reports that, “the United States, following the increase of its domestic production and a series of refinery closures, has drastically cut back oil imports from Nigeria. In February, the U.S. imported 325,000 barrels per day, over 1 million a year earlier (at this time Washington was the biggest buyer of Nigerian crude), according to the U.S. Energy Information Administration.”
Apparently, Nigeria is looking to China to sell its oil. The Central Bank of Nigeria plans to diversify its currency reserves, raise holdings into yuan to facilitate trade between the two nations.
According to the Asia Times, “the first hurdle that hinders Nigeria’s plans to divert crude exports from the Euro-Atlantic region to China is that of distance. The voyage from the Nigerian oil terminal of Bonny to the Chinese harbor of Tianjin is 17,000 kilometers, while it is just over 8,000 km to New York and 7,000 km to Rotterdam, in Europe. Since Chinese buyers should recover the cost of the long crude shipping, the reality is that they could call on price cuts.”
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