Singapore, Asia’s prominent oil hub, is anticipated to receive increased volumes of fuel oil from Nigeria’s Dangote refinery in April, following a significant surge in arrival volumes during the previous month, according to trade sources familiar with the matter.
The refinery has recently offered additional residual fuel for export through its latest tender this week. The cargo is scheduled for loading between April 17 and April 19, as confirmed by sources close to the situation. This combination cargo will consist of approximately 85,000 tonnes of low-sulphur straight-run fuel oil and 35,000 tonnes of slurry. The tender is set to close on Friday, according to the same sources.
Prior to this offering, the refiner had successfully sold a cargo with loading scheduled between April 10 and April 12, based on tender records compiled by Reuters.
Throughout 2024, Asia has emerged as the primary destination for fuel oil exports from the Dangote refinery, according to data provided by shipping analytics firm Kpler. Industry sources indicate that Dangote exports fuel oil on an intermittent basis, with shipments contingent upon the operational status of the refinery.
March witnessed a record monthly high of Nigerian fuel oil arrivals in Asia, exceeding 300,000 tonnes according to Kpler’s data. Market analysts suggest that expectations of higher supply volumes are likely to exert downward pressure on fuel oil benchmarks across Asia, which have already demonstrated signs of softening in recent trading sessions.
Source: Reuters
