Nigeria’s Dangote Refinery will import 9 million barrels of U.S. WTI crude in June, marking its largest monthly intake since operations began in early 2024. Traders say the move highlights a growing shift away from local crude grades.
Trading firms Vitol and Petraco are supplying the shipments. Vitol is sending three 2 million barrel cargoes, while Petraco is delivering another 2 million barrels plus a Suezmax shipment. Only one WTI cargo reached the refinery in May, compared to three in April, according to Vortexa.
Although designed to refine Nigerian crude, Dangote has relied increasingly on imports. Local grades have made up less than half of its feedstock in recent months.
Traders expect NNPC to raise its official selling prices slightly for June, which could reduce the appeal of local grades. In early May, WTI held a 90 cents per barrel premium to North Sea Dated on a delivered-Europe basis. Dangote’s WTI purchases were made at similar delivered-Nigeria levels, although final prices were not confirmed.
NNPC’s May pricing put Escravos at $1.63 per barrel above Dated Brent, while Bonny Light stood 48 cents higher. Both already match or exceed WTI prices before freight costs.
With demand from Europe subdued, Dangote provides a valuable outlet for U.S. crude. European WTI intake is expected to drop to 1.5 million barrels per day in June, below typical levels. Traders warn that tracking may underreport actual volumes.
European interest in WTI has also dropped due to cheaper Caspian CPC Blend, which averaged $3.20 less per barrel in May. Despite added freight, CPC remains competitively priced below WTI.
A growing surplus of light crude, driven by high Kazakh output and weak Asian demand, continues to weigh on the global market. Some European refineries are also running below capacity, adding to the oversupply challenge.