Dangote Refinery’s Petrol Production Disrupts European Markets – OPEC

The Organization of the Petroleum Exporting Countries (OPEC) has warned that the Dangote Petroleum Refinery’s ramped-up production of Premium Motor Spirit (PMS) is affecting European gasoline markets. The 650,000-barrel-per-day refinery, which began operations in January 2024, has already begun to export petrol, diesel, and aviation fuel both within and outside Africa.

According to a recent OPEC report, the refinery’s gasoline exports have reduced the demand for imported fuel from Europe, shifting global supply patterns. The organization forecasts that as Nigeria continues to produce its own gasoline, the surplus will lead to further adjustments in international markets.

While European gasoline exports remain strong, the report highlighted that high gasoline inventories at key hubs such as Amsterdam-Rotterdam-Antwerp (ARA) are likely to continue building up. The OPEC report also predicts that winter demand pressures could worsen market conditions, especially as global refining output continues to rise.

In a positive development for Nigeria, OPEC reported a slight increase in the country’s oil production, which hit 1.507 million barrels per day in December 2024, up from 1.477 million barrels per day in November.

Dangote Refinery’s impact is being felt beyond Africa, as its 650,000 bpd capacity now exceeds major European refineries such as Shell’s Pernis (404,000 bpd) and BP’s Rotterdam (380,000 bpd). The refinery’s operations are significantly altering global oil and fuel dynamics, positioning Nigeria as a key player in the international market.

OPEC’s report emphasized that these changes will have lasting effects on the global supply chain, as more countries turn to Nigeria for fuel supplies.

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