Dangote refinery reduces crude imports from US
The Dangote Petroleum Refinery is reducing its importation of crude from the United States, taking more of Nigeria’s oil for processing, a report by Bloomberg said.
The report stated that the 650,000 refinery is set to import just over four-fifths of its feedstock from domestic sources in the third quarter. That compares with less than three-quarters in the prior quarter, according to tanker-tracking data and information from traders.
It was learnt that oil prices were pressured last month on reports that the plant planned on re-selling some of the US barrels it previously purchased, underscoring the pivotal role Dangote already plays within Atlantic basin petroleum markets.
The refinery’s efforts to dial back overseas crude purchases potentially leave more US export barrels competing for buyers elsewhere.
The pivot could even gather pace in the coming months.
The PUNCH reported earlier that the Federal Government would start selling crude in the local currency to Dangote from October 1.
It is not yet certain how much supply will be traded under the system but if the 450,000 meant for local consumption is exhausted, the process could leave Dangote requiring hardly any overseas crude.
