The Dangote Petroleum Refinery retained 13% of Nigeria’s crude oil exports as home provide in 2024, in response to Reuters.
This raised Nigeria’s home share of oil exports from 2 p.c in 2023 and barely reduce the nation’s exports to Europe.
Nonetheless, regardless of being a serious internet exporter of crude, Nigeria imported 47,000 barrels per day of US oil in 2024. Specialists say that is uncommon for crude oil exporting nations.
The Dangote refinery, alongside different new refineries that sprung up within the international south, has reportedly altered the worldwide circulation of crude amidst sanctions on Russian oil and battle within the Center East.
Dangote Refinery imported US oil
The 600,000 bpd capability Dangote Petroleum refinery contributed to the elevated quantity of Nigeria’s crude imports from the US. Nairametrics reported that the Dangote refinery obtained its first cargo of US WTI in November 2024.
The a number of shipments obtained from the US by the Dangote refinery boosted Nigeria’s imports from the US in 2024 because the Nigerian Nationwide Petroleum Firm failed to produce crude oil to the refinery.
International crude exports declined by 2% in 2024
Reuters reported, quoting transport information, that the quantity of worldwide crude export quantity in 2024 declined by 2%, the primary dip for the reason that COVID-19 pandemic. That is attributed to weak demand progress and reshuffled commerce routes as a result of conflicts, sanctions, and new pipelines and refineries.
- The wars in Ukraine and the Center East induced lots of rerouting of tanker shipments, whereas sanctions on Russia and Iran compelled importers in Europe and South America to hunt new suppliers.
- Following the outbreak of Russia’s warfare with Ukraine, European refiners lowered their imports from Russia whereas boosting purchases of oil from the U.S. and the Center East. Nonetheless, assaults on vessels within the Pink Sea as a result of Israel’s warfare Gaza led to greater transport prices from the Center East, so refiners turned to the U.S. and Guyana.
- Iraq’s exports dropped by 82,000 bpd, whereas the United Arab Emirates noticed a lower of 35,000 bpd. In the meantime, Europe elevated imports by 162,000 bpd from Guyana and 60,000 bpd from the U.S.
- Whereas Europe and South America turned down Russia’s oil, India and China embraced it.
Different elements which have contributed to the reshuffling of oil commerce routes embody the growth of Canada’s Trans Mountain pipeline to the nation’s west coast, falling oil output in Mexico, and a halt in Libyan oil exports.
Unpredictable 2025
It’s exhausting to foretell the worldwide oil market in 2025. Suppliers are uncertain about China’s oil calls for within the new yr. Nonetheless, some consultants anticipate calls for to rise in India.
Additionally, extra nations are anticipated to make use of much less oil within the coming years as they flip to fuel and renewable vitality sources.
As well as, it’s not clear whether or not or not President-elect Donald Trump will calm down the sanctions on Iran and Russia.
“This sort of uncertainty and volatility is the brand new regular – 2019 was the final ‘regular’ yr,” Erik Broekhuizen, a marine analysis and consulting supervisor at ship brokering agency Poten & Companions instructed Reuters.
What it’s best to know
- The Dangote Refinery is the most important single-train refinery in Africa and Europe with a capability to provide 600,000 barrels per day. Nonetheless, it’s not working at its full capability but.
- Along with home provides, the refinery can be exporting Premium Motor Spirit to numerous African nations together with Cameroon, Angola, Ghana, and South Africa. It additionally exports diesel and jet fuels to Europe.
- In line with the Nationwide Bureau of Statistics, Nigeria’s crude oil export was valued at N14,559.56 billion representing 74.98% of complete exports in Q2 2024.
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