HomeNewsDangote Refinery Buys 2m Barrels Of Crude Oil From US

Dangote Refinery Buys 2m Barrels Of Crude Oil From US

Dangote refinery is set to import crude from the US in the coming months, going by reports according to Bloomerg.

January this year, the Dangote refinery announced that it had kick-started operations after receiving the final batch of the 6 million crude oil supply under a supply deal with the Nigerian National Petroleum Company Limited.

However, Bloomberg reports that Trafigura Group is expected to sell 2 million barrels of WTI Midland to the Dangote Refinery for end-February delivery, quoting traders with knowledge of the matter.

With the development, sources said this is the first time the giant refinery has purchased non-Nigerian crude.

It’s unclear why a refinery in a large oil-producing country is buying from the US, but price is likely a factor, according to traders.

West Texas Intermediate Midland barrels are cheaper than grades like Nigeria’s, which are priced relative to North Sea grade Brent.

Aliko Dangote, the owner of the 650,000 barrel-a-day oil refinery and Africa’s richest man, said it will commence gasoline production in March this year.

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