Dangote Refinery Ships Jet Fuel To US Amid Petrol Trade Crisis In Nigeria — Report

According to ship-tracking data from Kpler, six vessels carrying about 1.7 million barrels of jet fuel from the Dangote refinery made their way to American ports this month.

According to the data, a second vessel, the Hafnia Andromeda, will bring about 348, 000 barrels of jet fuel to the Everglades terminal on March 29.

After the refinery shipped barrels to North America, imports of U.S. jet fuel are expected to reach a two-year high in March.

According to the data, the total imports of U.S. jet fuel have reached 226, 000 bpd, which is the highest level since February 2023.

The development comes amid controversy over the Nigerian market’s access to premium motor spirits or gasoline and the sale and sale of crude oil to the refinery.

Recently, there was word of the Federal Government’s decision to revoke the refinery’s naira-for-crude agreement, which has since caused panic in both marketers and consumers.

The 650, 000-barrel refinery’s ability to sell naira-per-day gasoline to marketers has also been suspended.

It complained that the sale proceeds and the oil purchase obligations, which it claimed are currently denominated in US dollars, were being matched.

Dear customers, we’d like to let you know that the Dangote Petroleum Refinery has temporarily suspended the sale of petroleum products in Nigeria. This decision must be made in order to prevent a conflict between our current US dollar sales and our crude oil purchase obligations.

“To date, we have received more naira-denominated crude than the value of our petroleum products,” we have said. We must therefore temporarily adjust our sales currency to match our crude procurement currency, the company stated.

The price of loading gasoline at private depots in Lagos increased by about N900 per liter as soon as the announcement was made. Prior to the announcement, it was N850/liter.

After years of delayed construction, the Dangote refinery started producing in January. In early February, it increased its capacity to about 85%, which increased its capacity to serve more foreign markets.

Read more about the oil price rises for the fifth day in response to concerns about supply cuts.

A maintenance-related shutdown of the Phillips 66 Bayway refinery in New Jersey made it unlikely that Dangote would provide regular jet fuel to the United States, according to Sparta Commodities analyst James Noel-Beswick, who contributed to the report sent to Reuters.

Imports in March are expected to reach their highest level since February 2023, according to column charts showing monthly US imports of jet fuel by origin country.

Due to the growing U.S. inventories of aviation fuel, Noel-Beswick said, the window is likely to close soon or shrink significantly.

According to Chief Operating Officer Steven Barsamian, the demand for storage tanks for jet fuel in Houston and New York Harbor in April is typically 700,000 barrels on storage broker TankTiger’s platform, which is five to six times the monthly average.

In the wake of the nation’s peak summer travel season, according to Barsamian, the surge in demand, partially due to the influx of supply from Nigeria, is likely to lower jet fuel prices in the United States.

According to data from the U.S. Energy Information Administration, U.S. jet fuel stocks reached 45.2 million barrels at the end of February, which was the highest volume for the month since 1999.

Source: Channels TV