Emmanuel OchayiNigeria’s Dangote Refinery has increased jet fuel exports to the United States, helping to stabilise prices as demand reaches a two-year high. The 650,000 barrels-per-day (bpd) refinery, the largest in Africa, has emerged as a key supplier in the global market. By shipping large volumes of jet fuel to North America, Dangote Refinery is reshaping fuel trade flows in the Atlantic Basin.
Industry analysts believe this move could ease fuel costs ahead of the peak summer travel season. The refinery’s ability to compete with European suppliers highlights its growing influence on global fuel trade.
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Rising U.S. Demand Meets Dangote Refinery Supply
Jet fuel consumption in the United States surged in March, pushing total imports to approximately 226,000 bpd, the highest since February 2023. Dangote Refinery has played a major role in this increase.
Data from ship-tracking service Kpler shows that six vessels carrying around 1.7 million barrels of jet fuel from Nigeria arrived at U.S. ports this month. Another vessel, Hafnia Andromeda, is expected to deliver an additional 348,000 barrels to the Everglades terminal by the end of March.
This influx of supply has opened new trade opportunities for Nigeria’s refinery, demonstrating its potential to disrupt established markets.
Refinery Operations Enable Market Expansion
Dangote Refinery began production in January after years of delays. By February, it had ramped up to 85% capacity, allowing for more exports to international markets.
The refinery’s entry into the U.S. market comes at a time when domestic supply faced challenges. A maintenance-related shutdown at the Phillips 66 Bayway refinery in New Jersey created a gap in supply, which Dangote Refinery has helped to fill.
“The opening for Dangote came due to supply disruptions in the U.S.,” said James Noel-Beswick, an analyst at Sparta Commodities. “However, this window may not always be available.”
Impact on U.S. Fuel Prices and Storage
The arrival of Nigerian jet fuel in the U.S. has led to increased demand for storage. TankTiger, a storage broker, reported that lease requests for jet fuel tanks in Houston and New York Harbor have surged to 700,000 barrels, five to six times the usual monthly demand.
“The extra supply from Nigeria is likely to bring down jet fuel prices ahead of summer,” said TankTiger’s Chief Operating Officer, Steven Barsamian.
Despite this, economic factors such as a stock market selloff and reduced consumer confidence could dampen air travel, according to analysts.
Long-Term Market Shifts
U.S. jet fuel stocks reached 45.2 million barrels by the end of February, the highest level for the month since 1999. U.S. refiners have also increased their jet fuel production in response to growing demand.
The U.S. Energy Information Administration (EIA) predicts that domestic jet fuel consumption will reach record levels in 2026.
With its expanding exports and increasing global influence, Dangote Refinery is positioning itself as a major player in the international energy market. Its role in the U.S. supply chain signals a shift in global fuel trade, with potential long-term implications for pricing and competition.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
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