Nigeria’s Dangote oil refinery is shopping for ever extra US crude

The place does a large refinery in Nigeria, Africa’s largest oil producer, go to supply the uncooked supplies it must make fuels for the nation of 228 million folks? Attempt crude fields round Midland in West Texas, about 6 500 miles away.

This yr, the mega plant Dangote, close to the industrial capital Lagos, purchased a 3rd of its crude from the US — the lion’s share of it being the grade West Texas Intermediate – Midland, ship monitoring compiled by Bloomberg exhibits. The proportion has been nearly double what it was in 2024, the ramp-up yr.

The cargo purchases matter as a result of they might simply as simply have been despatched tankers to Europe, serving to to find out the world’s most necessary bodily oil value, Dated Brent. The very fact they’re not means fewer can be found for buy within the North Sea, barely limiting availability of benchmark barrels. In addition they underscore Nigeria’s longstanding challenges to spice up output in keeping with the nation’s ambitions.

Dangote’s elevated purchases “most likely on the margin supported the Brent market just a little,” mentioned Sparta Commodities analyst Neil Crosby. “I anticipate WTI to maintain flowing to Dangote to a point sooner or later, however the volumes will depend upon value.”

To be clear, the heightened flows are logical. No two crudes are an identical and the earnings from working them range relying on what fuels each churns out.

WTI provides Dangote benefits over Nigerian crudes that end in improved yields of reformate and higher gasoline mixing capabilities, based on Randy Hurburun, senior refinery analyst at Power Facets.

A spokesman for Dangote mentioned the elevated use of US oil displays the refinery’s rising processing ranges and a discount of Nigerian crude that’s in the stores.

WTI Midland is by far the most important stream of six grades that set Dated, because the benchmark is understood amongst merchants. It was added to the benchmark due to issues that the opposite 5 — North Sea grades Brent, Forties, Oseberg, Ekofisk and Troll — have been slowly working out, making buying and selling probably extra unstable.

In June and July alone, Dangote is predicted to absorb 14 million barrels of WTI Midland, based on merchants who monitor the corporate’s purchase tenders intently. Buying and selling large Vitol Group was the largest provider of US barrels, lists of vessel bookings present. A spokesperson for the corporate declined to remark.

The additional WTI flows to the plant additionally coincided with comparatively weak demand for the WTI Midland in Asia in latest months on account of Chinese language tariffs on US crude and availability of competing provides of Abu Dhabi’s Murban crude, Crosby mentioned.

© 2025 Bloomberg

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The place does a large refinery in Nigeria, Africa’s largest oil producer, go to supply the uncooked supplies it must make fuels for the nation of 228 million folks? Attempt crude fields round Midland in West Texas, about 6 500 miles away.

This yr, the mega plant Dangote, close to the industrial capital Lagos, purchased a 3rd of its crude from the US — the lion’s share of it being the grade West Texas Intermediate – Midland, ship monitoring compiled by Bloomberg exhibits. The proportion has been nearly double what it was in 2024, the ramp-up yr.

The cargo purchases matter as a result of they might simply as simply have been despatched tankers to Europe, serving to to find out the world’s most necessary bodily oil value, Dated Brent. The very fact they’re not means fewer can be found for buy within the North Sea, barely limiting availability of benchmark barrels. In addition they underscore Nigeria’s longstanding challenges to spice up output in keeping with the nation’s ambitions.

Dangote’s elevated purchases “most likely on the margin supported the Brent market just a little,” mentioned Sparta Commodities analyst Neil Crosby. “I anticipate WTI to maintain flowing to Dangote to a point sooner or later, however the volumes will depend upon value.”

To be clear, the heightened flows are logical. No two crudes are an identical and the earnings from working them range relying on what fuels each churns out.

WTI provides Dangote benefits over Nigerian crudes that end in improved yields of reformate and higher gasoline mixing capabilities, based on Randy Hurburun, senior refinery analyst at Power Facets.

A spokesman for Dangote mentioned the elevated use of US oil displays the refinery’s rising processing ranges and a discount of Nigerian crude that’s in the stores.

WTI Midland is by far the most important stream of six grades that set Dated, because the benchmark is understood amongst merchants. It was added to the benchmark due to issues that the opposite 5 — North Sea grades Brent, Forties, Oseberg, Ekofisk and Troll — have been slowly working out, making buying and selling probably extra unstable.

In June and July alone, Dangote is predicted to absorb 14 million barrels of WTI Midland, based on merchants who monitor the corporate’s purchase tenders intently. Buying and selling large Vitol Group was the largest provider of US barrels, lists of vessel bookings present. A spokesperson for the corporate declined to remark.

The additional WTI flows to the plant additionally coincided with comparatively weak demand for the WTI Midland in Asia in latest months on account of Chinese language tariffs on US crude and availability of competing provides of Abu Dhabi’s Murban crude, Crosby mentioned.

© 2025 Bloomberg

Comply with Moneyweb’s in-depth finance and enterprise information on WhatsApp right here.