Nigeria's Dangote oil refinery extends US crude buying spree into July

Nigeria's Dangote oil refinery will import at least 5-million barrels of US WTI crude oil in July, three trading sources told Reuters, extending its buying spree after a potential record tally for June.

The giant new 650,000 barrel per day capacity oil refinery is set to import around 161,000 bpd of WTI in July after awarding tenders in recent days, the sources said, off the back of a record 300,000 bpd booked in its June tenders.

Final totals for the month could change should the refinery make more purchases.

The buying spree highlights the increasing competition oil exporters face as the OPEC+ producer group increases output, with US crudes struggling to compete in Asia against a six-month low in spot premiums for UAE Murban crude, traders said.

Commodity trader Vitol supplied 2-million barrels for July delivery in the latest Dangote tender, Azeri state-owned Socar another 2-million barrels, and miner and trader Glencore sold the remaining 1-million barrels, the sources said.

Vitol did not immediately respond to a Reuters request for comment on the tender result, while Socar and Glencore declined to comment.

The sellers of the 9-million barrels Dangote was to have bought for June arrival in an earlier tender were not confirmed by Reuters. Tender details are not made public.

Dangote's previous record for US crude imports was 173,000 bpd in April, data from global shipping analytics firm Kpler show.

"We can take only what they are giving to us from Nigeria, this is a known fact. We have to import the rest," said Edwin Devakumar, head of the Dangote oil refinery.

The Dangote refinery's crude diet comprises mainly Nigerian grades, though it has been purchasing WTI semi-regularly since March 2024, according to Kpler. In 2025 it has also bought spot cargoes from Angola, Equatorial Guinea, Algeria and Brazil, the data shows.

The refinery is expected to operate at reduced rates through to October due to a series of issues in recent months, according to industry monitor IIR.

The refinery is now ramping up toward 85% operating capacity, a spokesperson for the refinery told Reuters. It had been running at around 80% since mid-March, IIR said.

Reuters