The Nigerian National Petroleum Corporation (NNPC) has designated six million barrels of crude oil for the Dangote Petroleum Refinery, scheduled for June 2025. This move aims to bolster refinery operations, which have faced persistent feedstock shortages.
Specifically, the allocation includes Escravos, a medium sweet crude, alongside four light sweet grades: Bonny Light, Brass River, Okwuibome, and Yoho. Under a government-backed six-month supply deal, Dangote can pay in naira, easing financial pressures. This arrangement seeks to resolve recent supply disruptions.
Additionally, Dangote is increasing imports of U.S. West Texas Intermediate (WTI) crude, with nine million barrels expected in June. Trading firms Vitol and Petraco will facilitate these shipments, marking a sharp rise from May’s single delivery. Vitol will provide three two-million-barrel cargoes, while Petraco will supply four million barrels, including one Suezmax shipment.
In May 2025, Escravos crude traded at a $1.63 premium over Dated Brent, while Bonny Light commanded a 48-cent premium. These rates align with WTI prices before freight adjustments. Notably, WTI in Europe was priced 90 cents above North Sea Dated Brent. Though Dangote’s June import costs are similar, final figures remain confidential.
Globally, light crude oversupply and weak demand persist. For instance, Kazakhstan’s CPC Blend was $3.20 cheaper per barrel than Nigerian crude in May, despite higher shipping expenses. This price gap has made CPC Blend preferable for many refiners.
European crude demand has softened, with some refineries running below capacity. Similarly, Asian markets remain sluggish, worsening the light crude glut. Consequently, Europe’s WTI imports may fall to 1.5 million barrels daily in June.
Amid these challenges, Dangote has become a key buyer for U.S. suppliers, reinforcing its influence in global oil trade. This trend highlights the value of strategic alliances and diversified supply chains in today’s volatile energy landscape.