Nigeria and Angola, Africa’s two largest oil producers, are struggling to find buyers for their crude, with unsold cargoes from both countries swelling to an estimated 40 million barrels earlier this week, an unusually high level that has raised concerns across energy markets.
Industry analysts say the build-up reflects weakening global demand, particularly from key Asian buyers, combined with rising competition from cheaper and more readily available crude from the United States, the Middle East and Brazil. Traders described the situation as one of the worst sales slowdowns seen in years for West and Central African grades.
Nigerian crude, prized for its low sulphur content, has traditionally been popular with European refiners. However, refineries in Europe are operating below capacity due to sluggish economic growth and high operating costs, reducing their appetite for imports. At the same time, increased supplies of US shale oil have crowded the Atlantic Basin market, undercutting African barrels on price and delivery speed.
Angola is facing similar challenges. Its oil is primarily sold to Asian markets, especially China, but slower industrial activity and rising domestic stockpiles have curbed Chinese buying. Traders report that several Angolan cargoes scheduled for shipment in January and February remain unsold, forcing sellers to offer steeper discounts to attract interest.
The oversupply comes despite both Nigeria and Angola being members of OPEC+, which has implemented production cuts aimed at stabilising prices. Analysts note that even with these cuts, global supply remains ample, while demand growth has failed to meet earlier expectations.
“This level of unsold crude is highly unusual,” said one senior oil trader. “It signals a market that is well supplied and cautious, with refiners waiting for better pricing or clearer economic signals before committing.”
The backlog of unsold oil is putting pressure on government revenues in both countries, where oil exports are a critical source of foreign exchange and budget funding. Prolonged weakness in sales could strain public finances, worsen currency pressures and delay planned investments in energy infrastructure.
Market watchers say the situation may ease if OPEC+ deepens production cuts or if demand picks up later in the year. For now, however, Nigerian and Angolan producers are grappling with a rare and uncomfortable reality: plenty of oil, but too few buyers.
