Nigeria’s Dangote Refinery has significantly increased its purchases of crude oil from the United States, particularly sourcing the West Texas Intermediate (WTI) Midland grade, according to shipping data compiled by Bloomberg.
This year, the refinery near Lagos has sourced about one-third of its crude supply from the US, nearly double the volume imported in 2024, as the facility ramps up its processing capacity. The refinery’s decision to buy more American crude highlights ongoing challenges in Nigeria’s domestic oil production and the refinery’s strategic focus on optimizing fuel yields.
The shift has notable implications for global oil markets. The diverted volumes of WTI Midland crude to Nigeria reduce the amount available for European markets, slightly tightening the supply of barrels benchmarked by Dated Brent prices. Analysts suggest that Dangote’s growing US crude imports have marginally supported Brent pricing recently.
Randy Hurburun, senior refinery analyst at Energy Aspects Ltd., explained that WTI Midland crude offers specific advantages to Dangote Refinery, including better yields of reformate and enhanced gasoline blending capabilities, compared to Nigerian crude grades.
A spokesperson for Dangote Refinery attributed the increased US crude imports to higher processing levels at the plant and a shortage of locally available Nigerian crude on the market.
In the coming months of June and July, the refinery is expected to import approximately 14 million barrels of WTI Midland crude. Vitol Group, a leading global trader, has been identified as the largest supplier of these US barrels, although the company has declined to comment.
The surge in US crude flows to Dangote coincides with decreased demand for WTI Midland in Asian markets, partly due to Chinese tariffs on American crude and the availability of alternative supplies like Abu Dhabi’s Murban crude, according to market observers.
Dangote Refinery’s reliance on US crude reflects broader dynamics in the global oil trade as emerging refineries seek feedstock that aligns with their operational needs amid shifting supply landscapes.
