In a finely balanced oil market, Nigeria has suddenly reemerged as a key player.

During the past few weeks, actions by the country’s massive Dangote refinery have moved prices, with purchases of US barrels initially boosting the crude futures curve before a decision to sell them sent oil tumbling.

Once fully operational, the plant outside Lagos will be able to process 650,000 barrels a day, rivaling the largest sites in the US and more than 50% larger than Europe’s biggest refinery.


A look at International Energy Agency data this week shows why that’s so important.

Even if OPEC+ cancels planned supply hikes, there will be a surplus of about 860,000 barrels a day next year. The group currently plans to add 540,000 barrels a day next quarter.

Both figures are close to Dangote-sized swings.

Refinery ramp-ups are complicated, and there’s already been at least one delay. But once the site starts churning out gasoline, it will transform fuel markets in the region and upend long-established trade flows, particularly in Europe, where Nigeria currently purchases much of its supplies.

Aliko Dangote, the billionaire behind the plant, said last month the plan is for it to start producing the fuel in August, though others are doubtful.

“The refinery’s gasoline is unlikely to hit the market until at least September,” consultant FGE wrote this month, citing issues with some of the plant’s units.

Then there’s the question of feedstock.

The facility was built on a dream of Nigeria consuming its own crude. That’s why there was an uproar when Dangote started buying US supplies.

Recently, the country announced plans for its refiners to pay for oil in local currency and to consume as many as 445,000 barrels a day of domestic product. Still, it’s unclear how the latter will happen.

But if it does, that will mean less crude for current buyers, notably in Europe.

It also means that in an oil market focused on war, economic slowdowns and output curbs, Nigeria will be a surprisingly hot topic among traders in coming months.

--Alex Longley and Bill Lehane, Bloomberg News

Zwooks:
Dangote should source his feedstock anywhere he so pleases and leave the country alone. Also, the refinery wasn't constructed to consume the nations crude. It was constructed because Dangote wanted to explore the industry. Nigeria must not be made an estate of Dangote

happney65:


Why should he get his feedstock elsewhere? Whether you like it or not,He will get it in Nigeria and there is nothing you can do about it

Hangover Refinery will WORK!

Rossikk:
This country will shake the world.

In fact we're already shaking the world.

But more to come.

See how Dangote Refinery is making the whole world tremble, especially Europe.

What will they say when we now complete our 25 billion dollar gas pipeline that is heading straight to Europe as we speak?

That will end Russia's status as the monopoly supplier to Europe, and triple our annual income.

We better go and start adding nuclear capability to our military.

Because I don't think Putin is finding all these moves by Nigeria funny at all.

Zwooks:




Putin threatened by Nigeria ?


Go research the number of barrels Russia refines per day


Go research the quantity of fertilizer Russia produces thanks to its Crude reserves


Go research the quantity of Crude reserves Russia has


Go research the vast amount of lands Russia cultivates from its Oil wealth



Learn to read wide so as to get better enlightened before making public comments please


As for Nuclear power issues, please what country is Nigeria contracting to build mini Nuclear power stations ? Do you youths read after watching porn at all

Habbeyy:
rest

Habbeyy:
rest

Rossikk:
This country will shake the world.

In fact we're already shaking the world.

But more to come.

See how Dangote Refinery is making the whole world tremble, especially Europe.

What will they say when we now complete our 35 billion dollar gas pipeline that is heading straight to Europe as we speak?

That will end Russia's status as the monopoly supplier to Europe, and triple our annual income.

We better go and start adding nuclear capability to our military.

Because I don't think Putin is finding all these moves by Nigeria funny at all.

Zwooks:
Dangote should source his feedstock anywhere he so pleases and leave the country alone. Also, the refinery wasn't constructed to consume the nations crude. It was constructed because Dangote wanted to explore the industry. Nigeria must not be made an estate of Dangote

Zwooks:



Good. Because the nation will not terminate hundreds of crude contracts to please Dangote


Two, the nation is a bigger entity than Dangote and he can't dictate the pace and policy direction of the country. He has been doing it forever. This is where it stops


Three, refineries all over the world buy crude from so many sources. Dangote is free to go to Libya, Algeria, Malta, Iran to source his crude but the nation will no longer be subservient to him

Guestlander:


Very myopic thinking.

Zwooks:



Whatever. We won't be bent over anymore by your ethnocentric inclinations.

Zwooks:
Dangote should source his feedstock anywhere he so pleases and leave the country alone. Also, the refinery wasn't constructed to consume the nations crude. It was constructed because Dangote wanted to explore the industry. Nigeria must not be made an estate of Dangote

Zwooks:



Whatever. We won't be bent over anymore by your ethnocentric inclinations.

Zwooks:




Putin threatened by Nigeria ?


Go research the number of barrels Russia refines per day


Go research the quantity of fertilizer Russia produces thanks to its Crude reserves


Go research the quantity of Crude reserves Russia has


Go research the vast amount of lands Russia cultivates from its Oil wealth



Learn to read wide so as to get better enlightened before making public comments please


As for Nuclear power issues, please what country is Nigeria contracting to build mini Nuclear power stations ? Do you youths read after watching porn at all