Aliko Dangote
Nigeria's Dangote, the largest oil refinery in Africa, is preparing to purchase crude from the US, indicating the increased competitiveness of American barrels in the global market. Trafigura Group, as reported by Bloomberg, has sold 2 million barrels of WTI Midland to the Dangote refinery, scheduled for delivery at the end of February. This marks the first time the substantial refinery has sourced non-Nigerian crude. The rise in US oil supply over the past decade has significantly impacted the global market, particularly influencing regions like Asia.
The Dangote refinery, owned by Africa's wealthiest individual, Aliko Dangote, and boasting a daily processing capacity of 650,000 barrels, has recently commenced operations. Initially targeting a processing rate of 350,000 barrels per day, the refinery, despite being situated in a major oil-producing nation, is choosing to procure from the US. This decision is likely influenced by pricing considerations, with West Texas Intermediate Midland barrels generally being more cost-effective than Nigerian grades benchmarked against North Sea's Brent. The refinery, designed to process various African crudes along with supplies from the US and Saudi Arabia, is set to begin gasoline production in March.
SOURCE: www.cometodaddy.xyz
