LAGOS, Nigeria — Dangote Petroleum Refinery’s growing appetite for Nigerian crude oil is lifting premiums on key export grades and supporting the country’s oil market amid uncertainty in global energy markets, according to a Bloomberg report.
Okay News reports that Nigerian Bonga, Escravos and Bonny Light crude for July loading are being offered at premiums of between $5.50 and $7 per barrel above the Dated Brent benchmark, as much as $2 per barrel higher than premiums recorded for June cargoes.
Dangote Refinery processed more than 16 million barrels of Nigerian crude in June, according to tanker-tracking data compiled by Bloomberg, translating to approximately 526,000 barrels per day and accounting for a substantial portion of its recently expanded 700,000 barrels per day processing capacity.
Traders told Bloomberg that crude prices would be significantly lower without the refinery’s buying activity helping to absorb available supplies.
Nigeria typically exports and trades approximately 50 million barrels of crude oil each month. Dangote Refinery’s purchases accounted for almost one-third of that monthly volume, tightening the domestic crude market and strengthening premiums for several export grades.
Angola, Nigeria’s main regional competitor, has faced weaker demand from its largest customer, China. China’s crude oil imports declined to their lowest level in more than eight years as rising global prices and geopolitical uncertainty weighed on buying decisions. Angola’s state-owned oil company, Sonangol, recently offered its Dalia crude at a discount of $1.80 per barrel to the Dated Brent benchmark, a significant reversal from the prior month when the same grade was offered at a premium of $3.50 per barrel and well below the peak premium of $10.60 per barrel recorded in mid-April.
The ongoing conflict involving Iran has introduced fresh uncertainty into global oil markets, influencing trading patterns and crude pricing across major exporting regions. The contrasting market dynamics have created divergent pricing trends for Nigerian and Angolan crude grades.
Dangote Petroleum Refinery commenced fuel production in 2024 and has steadily increased crude processing volumes since, recently raising its processing capacity to 700,000 barrels per day. The refinery has reduced Nigeria’s dependence on imported petroleum products and exports refined products to several African and international markets, including Europe and the Americas.
