Dangote Refinery Sustains US Crude Purchase With 5M Barrels

SEATTLE (Oil Monster): To sustain refining operations, the Dangote Refinery has placed import order of at least five million barrels of US West Texas Intermediate (WTI) crude oil in July, thus extending its buying spree after a potential record tally for June.

The giant new 650,000 barrel per day capacity oil refinery is set to import around 161,000 bpd of WTI in July after awarding tenders in recent days, off the back of a record 300,000 bpd booked in its June tenders. Final totals for the month could change should the refinery make more purchases, according to Reuters.

The buying spree highlights the increasing competition oil exporters face as the OPEC+ producer group increases output, with U.S. crudes struggling to compete in Asia against a six-month low in spot premiums for UAE Murban crude, traders said.

Commodity trader Vitol supplied two million barrels for July delivery in the latest Dangote tender, Azeri state-owned Socar another two million barrels, and miner and trader Glencore sold the remaining one million barrels, the sources said.

Vitol did not immediately respond to a Reuters request for comment on the tender result, while Socar and Glencore declined to comment.

Courtesy: www.leadership.ng