Dangote Refinery intends to procure 24 million barrels of crude from the US, signaling its growing influence in global oil trading. Nigeria's struggles to meet its oil production quotas and Dangote's quest for cost-effective supplies highlight the refinery's pivotal role.
Dangote Refinery intends to procure 24 million barrels of crude from the United States over the next year, per a Bloomberg report. The plant's "term tender" for two million barrels of WTI Midland crude monthly, starting July, reflects its increasing influence in global crude and fuel trading.
Nigeria's struggle to meet its OPEC quota is emphasized amidst declining production due to various factors like crude theft and aging pipelines. The refinery, operating at half capacity, opts for cheaper US oil imports for a significant portion of its feedstock.
The Nigerian government's decision not to regulate prices for the new Dangote Refinery underscores a shift towards commercial determinations, as stated by Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority.
