France's nationwide industrial action has further worsened Nigeria's glut of unsold crude oil, with more than 80% of France's 1.1 million barrels per day processing capacity shut down or in the process of shutting down.
The strikes, along with other plants across Europe buying less crude due to seasonal maintenance, have created a backlog for Nigerian crude. This has resulted in a combination of higher freight costs, lower tanker availability and lower overall demand for West Africa light sweet crude.
Nigeria's revival of crude production has also contributed to the unsold glut. France, typically one of Nigeria's biggest buyers, took an average of 110,000 barrels a day of Nigeria's oil over the past year, but its demand has shriveled this month with overall crude imports dropping by half in March, according to Wood MacKenzie.
Share Your Thoughts