The Organization of the Petroleum Exporting Countries has reported that the Dangote Petroleum Refinery’s production of Premium Motor Spirit (PMS) is impacting the European market. The refinery, with a capacity of 650,000 barrels per day, started producing PMS in September, reducing Nigeria’s reliance on fuel imports. Since then, it has been exporting petrol, diesel, and aviation fuel globally. This has led to a decrease in petroleum product imports from Europe to Nigeria.
OPEC mentioned that the ongoing operations at the Dangote refinery are affecting the European gasoline market. The report highlighted that Nigeria’s increased gasoline production may lead to surplus volumes in international markets, necessitating adjustments in distribution. The report also noted a decline in imports and improved external sector outlook due to reduced oil product imports.
The gasoline crack spread in Rotterdam against Brent has slightly increased, although gasoline inventories in the Amsterdam-Rotterdam-Antwerp hub remain high. OPEC predicts continued gasoline inventory builds in the coming months due to seasonal demand pressures. The report also anticipates a bearish market sentiment as gasoline refinery output levels recover.
In December, Nigeria’s average daily crude production reached 1.507 million barrels, showing an increase from the previous month. The Dangote refinery, with a capacity of 650,000 barrels per day, was ranked above major European refineries in terms of capacity.
Overall, the emergence of the Dangote refinery has significantly impacted the Nigerian fuel market and is influencing international gasoline markets, particularly in Europe.