Nigeria’s Dangote oil refinery is making waves in the oil industry as it plans to import over 5 million barrels of US WTI crude oil in July, according to sources. This move comes as an extension of its impressive buying streak, with records set in June. The refinery, boasting a massive capacity of 650,000 barrels per day, is gearing up to bring in approximately 161,000 barrels per day of WTI in July, following recent tender awards.
The significance of Dangote’s buying spree cannot be understated, shedding light on the escalating competition faced by oil exporters amidst the OPEC+ producer group’s increased output. US crudes are finding it challenging to compete in the Asian market, with spot premiums for UAE Murban crude hitting a six-month low, as noted by traders. In the latest Dangote tender, key players like Vitol, Socar, and Glencore contributed a total of 9 million barrels, with Vitol alone supplying 2 million barrels for July delivery.
Edwin Devakumar, the head of the Dangote oil refinery, emphasized the necessity of importing additional crude beyond Nigerian grades, stating, “We can take only what they are giving to us from Nigeria, this is a known fact. We have to import the rest.” While the refinery primarily relies on Nigerian grades, it has been sporadically purchasing WTI since March 2024. In 2025, it diversified its sources with spot cargoes from Angola, Equatorial Guinea, Algeria, and Brazil.
Despite its ambitious plans, the Dangote refinery has faced operational challenges, leading to reduced rates until October. However, recent reports indicate that it is gradually revving up towards 85% operating capacity, a positive sign for its operations moving forward.
The refinery’s strategic moves and procurement decisions are closely monitored by industry experts and traders, showcasing the dynamic landscape of the oil market. As Dangote continues to expand its reach and diversify its crude sources, it highlights the evolving nature of global oil trade and the intricate web of supply and demand dynamics.
In conclusion, Dangote’s foray into US crude imports underscores the complexities and fierce competition within the oil industry. As the refinery navigates operational hurdles and strategic decisions, its actions reverberate across the global oil market, shaping trends and influencing stakeholders. The future trajectory of Dangote’s oil ventures will be a focal point for industry observers, offering insights into the ever-changing dynamics of the energy sector.
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