Nigeria’s petrol imports surged in October – OPEC

The volume of Premium Motor Spirit (petrol) imported into Nigeria surged in October, a report by the Organisation of the Petroleum Exporting Company says.

This is despite the fact that the Dangote Petroleum Refinery started producing petrol in September this year.

OPEC, in its Monthly Oil Market Report, said though petrol import still remains at a 60 per cent low when compared to the same period in 2023, there was an increase in the quantity of PMS imported between September and October 2024.

Recall that some vessels arrived on the shores of Nigeria to discharge PMS, especially at a time when marketers were at loggerheads with the Dangote refinery.

It was learned that petrol import into Nigeria and West Africa came majorly from Europe during the month under review.

Quoting Argus, OPEC said, “Gasoline exports to West Africa strengthened and compensated for a drop in flows to the US. Exports to Nigeria were reported to have surged compared to the level registered in September despite still remaining 60 per cent lower, year-on-year.”

The report disclosed that PMS crack spread in Rotterdam against Brent increased as PMS exports from Europe rose in October.

Additional European PMS volumes were said to have been shipped to Libya and Saudi Arabia in October as well.

The international organisation maintained that new product volumes entering international markets from Nigeria’s Dangote refinery, China’s Yulong petrochemical, and Mexico’s Olmeca refinery “are set to lengthen product balances going forward, particularly for gasoline.”

Reuters earlier reports that about a third of Europe’s 1.33 million barrels per day average petrol exports in 2023 went to West Africa, a bigger chunk than any other region, with most of those exports ending up in Nigeria.

It noted that the 650,000-capacity Dangote refinery could end a decades-long petrol trade from Europe to Africa, worth $17bn a year.

Reuters, quoting analysts and traders, said the Dangote refinery was heaping pressure on European refineries already at risk of closure from heightened competition, adding that the refinery would be the largest in Africa and Europe when it reaches full capacity.

The PUNCH observes that the Dangote refinery is gradually achieving its mission to end oil imports into Nigeria.

Meanwhile, OPEC said refinery maintenance in India, a PMS supplier to the Middle East, had further supported petrol exports from Europe, contributing to positive petrol market strength.

“The gasoline crack spread against Brent averaged $17.34/b, which was $2.13 higher, month-on-month but $14.55 lower, y-o-y.

“In October, the jet/kerosene crack spread in Rotterdam against Brent recovered the previous month’s losses, backed by favourable supply-side dynamics. According to Platts, jet fuel inventories as of October 31 showed a monthly decline, likely caused by reduced refinery runs and lower jet/kerosene output.

“In December, jet/kerosene markets should temporarily benefit from increased travel activities toward the year-end holidays. The Rotterdam jet/kerosene crack spread against Brent averaged $15.82/b, up by $1.65, m-o-m, but at lower $16.40, y-o-y,” OPEC said.