The Organisation of the Petroleum Exporting Countries says the Dangote Petroleum Refinery and its efforts to ramp up Premium Motor Spirit (petrol) production are impacting the PMS market in Europe.
On Wednesday, an OPEC report stated that the emergence of Dangote refinery has reduced the importation of petroleum products from Europe to Nigeria.
Dangote refinery began operations in January last year with 650,000-capacity. Dangote started producing PMS in September, aimed at ending the country’s dependence on importation for its fuel needs.
Since it started production, the refinery has exported petrol, diesel, and aviation fuel to other countries within and outside Africa.
According to the report, “The ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its gasoline (petrol) exports to the international market will likely weigh further on the European gasoline market.
“Continued gasoline production in Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, will most likely continue to free up gasoline volumes in international markets which will call for new destinations and flow adjustments for the extra volumes going forward.”
In the last quarter of 2024, OPEC said “imports also declined, particularly oil product imports, improving the outlook for the external sector.”
The report stated that the gasoline crack spread in Rotterdam against Brent increased slightly on healthy exports although gasoline inventories at the Amsterdam-Rotterdam-Antwerp storage hub remained high.
It added that the gasoline inventory builds are expected to extend into the coming month amid a lengthening gasoline balance in the Atlantic Basin due to winter-season demand-side pressures.
OPEC maintained that the ongoing recovery in gasoline refinery output levels will likely exacerbate the already bearish market sentiment.
Meanwhile, the Monthly Oil Market Report disclosed that the average daily crude production in Nigeria hit 1.507 million barrels in December, according to data OPEC got from secondary sources.
It was said to have risen by 12,000bpd, from 1.477mbpd in November.
However, the figure supplied by the government was 1.485mbpd for December. This aligns with that of the Nigerian Upstream Petroleum Regulatory Commission.
