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Dangote Fuel Oil Exports Squeezing Out Europe

OIL PRODUCTS

Rising fuel oil exports from Nigeria’s new 650k b/d Dangote refinery are increasingly meeting demand in Singapore, the world's largest bunkering hub, Argus’ analyst Robert Wigin said via LinkedIn.

  • This has pushed European sellers out of the market, even as big exporters such as Al Zour in Kuwait have slowed their outflows in recent months.
  • With trade via the Red Sea curtailed, Singapore’s buyers can capitalise on lower freight journeys via the Cape to Nigeria compared with Europe.
  • This will allow Dangote to fill any supply gap left by drop in Kuwait’s fuel oil exports as it redirects the output to meet domestic power demand in hot summer temperatures.
  • The refineries of Al Zour (Kuwait), Dangote {Nigeria) and Duqm (Oman) increased clean product supplies by 700k b/d in June, compared to zero in Jan 2023.

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