For the first time on record, the United States exported more crude oil to Nigeria than it imported from the country in February and March 2024, according to data from the U.S. Energy Information Administration (EIA).
The reversal in trade flows was influenced by reduced demand along the U.S. East Coast due to refinery maintenance and increased demand from Nigeria’s newly operational Dangote Refinery, Reuters reported.
The Dangote Refinery, which began operations in 2024, has significantly altered traditional oil trade dynamics.
With a $20 billion price tag and a processing capacity of 650,000 barrels per day, it is the largest refinery in Africa.
It is also expected to disrupt a $17 billion-per-year gasoline export market from Europe to Africa, ending decades of reliance on imported fuel.
In February, U.S. crude exports to Nigeria averaged 111,000 barrels per day (b/d), while imports fell to 54,000 b/d.
In March, exports increased to 169,000 b/d and imports rose slightly to 72,000 b/d.
By contrast, U.S. crude imports from Nigeria had stood at 133,000 b/d in January.
Don’t Miss This:
U.S. Imports $1.34 Billion in Nigerian Crude in Five Months Despite Tariff
The drop in imports from Nigeria earlier this year was partly due to seasonal maintenance at the Phillips 66 Bayway refinery in New Jersey.
Imports have since increased again as the Bayway plant resumed full operations in April.
Meanwhile, output at the Dangote Refinery slowed temporarily due to unplanned maintenance.
Analysts have warned against assuming the trade reversal is a long-term shift.
“The new refinery in Nigeria and some issues in securing domestic supplies played a role for those unique flows earlier this year,” said Eli Tesfaye, senior strategist at RJO Futures.
UBS analyst Giovanni Staunovo echoed this view, noting: “The new refinery in Nigeria and some issues in securing domestic supplies played a role for those unique flows earlier this year. But going forward, with the refinery now aiming to secure domestic flows, and probably looking at other crude grades, it is difficult to forecast if the volume flowing from the U.S. to Nigeria will persist.”
Nigeria was the ninth-largest crude oil supplier to the U.S. last year.
Don’t Miss This:
Dangote Refinery Ships 1 Million Tons of Petrol Abroad as Nigeria Becomes Net Fuel Exporter
Image Credit: The Guardian
