MARKET SHOCK: Africa’s Largest Refinery Abandons Local Crude for U.S. Oil Imports
BREAKING – Nigeria’s Dangote refinery, Africa’s biggest crude processing facility, has dramatically shifted its sourcing strategy, with U.S. crude now accounting for one-third of its purchases despite Nigeria being Africa’s largest oil producer. The 650,000-barrel-per-day facility has been increasingly buying West Texas Intermediate (WTI) crude as it ramps up to full capacity.
The surprising development comes as Nigeria, Africa’s top OPEC member, struggles to boost domestic crude output. Vessel-tracking data reveals that WTI Midland grade has become a primary feed for the refinery, offering superior yields of reformate and better gasoline blending capabilities compared to local crude.
The shift has been facilitated by reduced Asian demand for WTI crude due to U.S.-China trade tensions, making more American crude available to other markets. In June 2025, U.S. crude is expected to have a larger share in Dangote’s imports than Nigerian crude – a remarkable turnaround for a facility built to process local resources.
Built by Africa’s richest person, Aliko Dangote, the refinery began fuel production in 2024 and is expected to meet 100% of Nigeria’s refined petroleum product demand while generating export surpluses.
Source: Oilprice.com