How Nigeria’s Dangote refinery is reshaping global oil flows with Texas crude

DDM News

In a major shake-up of global oil trade, Nigeria’s Dangote refinery is turning to Texas for crude supplies.

The sprawling refinery, located near Lagos, now sources about one-third of its crude oil from the United States, Diaspora Digital Media (DDM) gathers.

Most of these barrels come from West Texas Intermediate (WTI) Midland, roughly 6,500 miles away from Nigeria.

That’s almost double what it imported during its ramp-up year in 2024, ship tracking data from Bloomberg reveals.

The refinery’s demand is quietly shifting global trade flows and affecting the physical oil benchmark known as Dated Brent.

Instead of heading to Europe, many WTI cargoes are now rerouted to Nigeria, tightening supply in the North Sea.

Fewer barrels in the North Sea impact the benchmark Brent price, which reflects the cost of key global crude grades.

According to analyst Neil Crosby, Dangote’s growing demand has “probably at the margin supported the Brent market a little.”

He believes WTI flows to Dangote will likely continue but will depend largely on international price trends.

Refineries don’t just buy local crude, they choose based on how well it meets fuel production needs and profit margins.

WTI Midland offers higher yields of reformate, ideal for blending gasoline, compared to many Nigerian grades, experts say.

This makes it especially attractive for a mega-refinery like Dangote, which aims to supply fuels to 228 million Nigerians.

A Dangote Group spokesperson explained the U.S. oil imports reflect both rising refinery operations and limited Nigerian crude availability.

Nigeria has struggled for years to boost crude output due to underinvestment, insecurity, and pipeline theft.

These challenges reduce domestic supply, forcing Dangote to look elsewhere to meet its massive refining demands.

WTI Midland plays a big role in the Brent benchmark, alongside five North Sea grades nearing production decline.

It was added to Brent to ensure stability as traditional supplies from Brent, Forties, Troll, and others dwindled over time.

In just June and July, Dangote is expected to receive around 14 million barrels of WTI Midland, traders report.

Vitol Group, one of the world’s largest oil traders, is said to be the biggest supplier of these U.S. barrels.

A Vitol spokesperson, however, declined to comment on its dealings with Dangote.

The shift also comes as Asian demand for WTI Midland softens, due to tariffs and competition from Middle Eastern crude.

China, for example, has reduced U.S. oil purchases in favor of alternatives like Abu Dhabi’s Murban grade.

This has made more U.S. crude available for other buyers, such as Dangote in West Africa.

As Dangote ramps up, its sourcing decisions now influence trade routes, benchmark pricing, and regional refining dynamics.

The refinery’s choices highlight how one African giant is changing the course of global oil markets, barrel by barrel.

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