Trade in West African crude oil has slowed sharply despite a tightening global market, as sellers hold back April-loading cargoes in the hope of securing higher prices or redirecting barrels to their own refineries amid disruption caused by the closure of the Strait of Hormuz, traders said Friday.
The slowdown highlights how the war involving Iran, the United States and Israel is reshaping not only Middle Eastern energy flows but also the wider global physical oil market, including African export routes. Around 20 West African crude cargoes for April loading remain available, according to traders, even as the global market faces shortages and May export schedules have already emerged.
The unusual overhang is not being driven by weak demand, traders said, but by a strategic decision by sellers to wait for stronger bids in a rapidly tightening market. In many cases, the owners of the barrels can process them domestically if buyers are unwilling to pay a sufficiently high premium.
“They might sell if the price is right, but they don’t need to,” one trader told Reuters, noting that some sellers are under less pressure to move cargoes immediately because they have access to refining capacity.
The closure of the Strait of Hormuz through which roughly one-fifth of global oil and liquefied natural gas supply normally transits has disrupted tanker traffic and forced major Gulf producers such as Saudi Arabia, Kuwait and Iraq to reduce output or reroute exports. That has left refiners scrambling for alternative crude supplies, including from West Africa.
As a result, prices for West African grades have surged. Bonny Light, one of Nigeria’s flagship crude streams, was valued this week at a US$7.50-per-barrel premium to dated Brent, according to LSEG data its highest premium since the market upheaval following Russia’s invasion of Ukraine in 2022.
West African crude is typically sought after by refiners in Europe and Asia because of its relatively low sulphur content and flexibility in refining. But while demand has strengthened, the market is being complicated by a sharp rise in freight costs, which is making some deals less attractive, especially for Asian buyers.
Asia remains a crucial destination for African exporters. According to Kpler data cited by Reuters, China and India together accounted for nearly 40 percent of West Africa’s crude exports in 2025. Yet traders say Chinese buyers in particular are still favouring cheaper barrels from Russia and Iran, limiting how much of the current West African premium they are willing to absorb.
“China is still buying oil, but it’s going for the cheaper options,” one trader said, reflecting a wider shift in buying patterns as refiners seek to contain costs in a high-price environment.
In a normal market, some unsold cargoes from the current month often remain available by the time the next month’s loading programme is released. That so-called “overhang” usually signals weak demand or pricing mismatches. But traders say this month’s backlog is different: sellers are deliberately waiting, betting that the market could tighten even further if the conflict drags on or supply disruptions worsen.
The wider oil market remains highly volatile. Brent crude was trading above $110 per barrel on Friday, though prices were on track for their first weekly decline since the war began after tentative signs of de-escalation emerged. Still, analysts warn that any prolonged disruption to Gulf exports could drive prices higher again and deepen the scramble for replacement barrels.
For West African producers such as Nigeria, Angola and Congo, the current turmoil presents both an opportunity and a risk. Higher crude prices and stronger demand could boost export revenues, but elevated shipping costs and uncertain buying patterns may also complicate trade flows.
For now, traders say many sellers are in no rush.
With physical supply tight and geopolitical uncertainty still high, West African crude is increasingly being treated not just as an export commodity, but as a strategic option in a market where every barrel has become more valuable.
