FINWIRES · TerminalLIVE
FINWIRES

Market Chatter: Dangote Refinery Could Supply Jet Fuel to Global Markets, Says CEO

By

The Dangote refinery in Nigeria, with a 650,000 barrel-per-day capacity, holds a substantial jet fuel surplus, allowing it to cater to global markets, CEO David Bird said according to a Reuters report.

Jet fuel supply has faced severe disruptions due to conflict in Iran which has blockaded the Strait of Hormuz shipping chokepoint.

The geopolitical bottleneck has created an export window for non-Middle Eastern refiners like Dangote to plug shortages across international distribution networks.

The chief executive, speaking at the S&P Global Energy Middle East Petroleum and Gas Conference, confirmed that the Nigerian complex is presently operating at 100% of its designed processing utilization rate, as per the report.

He did not offer further context on volumes and the potential impact for global markets or why the company has not sold some of the surplus already.

Subdued domestic consumption across African markets has left the facility with significant excess volumes earmarked for overseas export markets.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Related Articles

Oil & Energy

EMEA Oil Update: Brent Extends Gain on Middle East Escalation

Brent crude benchmark rose for third day in a row on Wednesday, as Middle East hostilities flared with Iranian missile strikes on Kuwait and Bahrain.Brent futures contract climbed 1.8% to $97.76 per barrel. Murban futures closed at $96.09 on June 2 and were not trading by the time of publication of this oil price update."Oil edged higher as the US-Iran standoff showed no visible progress toward reopening the Strait of Hormuz," Saxo Bank analysts said.The immediate catalyst for the market rally was a severe outbreak of fresh regional hostilities, following reports of Iran firing missiles directly at Kuwait and Bahrain.This military escalation coincided with a breakdown in peace negotiations.ANZ noted that crude edged higher as broader diplomatic tracks struggled to stay viable, especially after media reports surfaced indicating that Hezbollah will not accept any partial ceasefire framework with Israel.However, President Trump dismissed widespread media reports of a diplomatic freeze as "false and erroneous," insisting that backchannel discussions between Washington and Tehran remain fully active in a post on Truth Social.Data released late Tuesday by the American Petroleum Institute revealed that US crude oil inventories plummeted by 6.75 million barrels for the week ended May 29.The energy market is now awaiting US Energy Information Administration petroleum inventory report, scheduled for release later on Wednesday.

Oil & Energy

US Oil Update: Crude Rises After Trump Says Iran Peace Talks Remain Active

Crude oil futures settled higher in after-hours trading on Tuesday after Trump said talks with Iran remain ongoing, countering earlier reports of a breakdown in negotiations, while Tehran is reportedly reviewing a US proposal to end the conflict.Front-month West Texas Intermediate crude futures advanced by 1.33% to $93.39 per barrel, while Brent futures rose 0.80% to $95.74/bbl.Iranian negotiators are reviewing a proposed agreement with the US to halt the conflict in the Middle East, but have not communicated with Washington for a few days, local media reported on Tuesday, after President Trump said peace negotiations were ongoing.Trump said on Tuesday that reports suggesting that the US and Iran had stopped communicating are "fake and erroneous," adding that talks between Washington and Tehran have continued over recent days.The US President said that while the direction of the talks remains uncertain, he has told Iran it is "time, one way or another, to make a deal," arguing that the current situation cannot continue indefinitely."The conversations between us have been going on continuously, including four days ago, three days ago, two days ago, one day ago, and today," Trump said in a social media post on Trust Social.Soojin Kim, research analyst at MUFG, said oil holds gains as uncertainty surrounding US-Iran negotiations raised concerns that disruptions to energy flows from the Persian Gulf could persist.Fueling uncertainty, Trump and Prime Minister Benjamin Netanyahu offered conflicting accounts of a call about the ongoing war between Israel and Hezbollah.On Monday, Trump said he held a call with Prime Minister Netanyahu during which he instructed Israel to halt a planned strike on parts of Beirut, as regional tensions escalated amid continued cross-border violence.Netanyahu, in a separate statement, said he told the US President that Israel would target locations in Beirut if Hezbollah did not stop attacks against Israel, following ongoing exchanges of fire in southern Lebanon.With commercial traffic through Hormuz still constrained and geopolitical tensions extending to Lebanon, investors remain focused on the risk of prolonged supply disruptions in a region that normally handles around one-fifth of global oil and LNG trade, said Soojin Kim, research analyst at MUFG.Market participants' focus remains on Hormuz, as commercial traffic through the strategic waterway remains constrained amid uncertainty over the US-Iran peace deal.The US Central Command said on Tuesday that US forces redirected 122 Iran-linked commercial vessels, while Iranian media reported that 24 vessels had transited the Hormuz over the past 24 hours.

Oil & Energy

Hormuz Traffic Remains Subdued Amid Iran Peace-Deal Uncertainty, Bloomberg Analysis Says

Commercial vessel traffic through the Strait of Hormuz remained limited on Tuesday amid uncertainty over a potential US-Iran peace deal, according to Bloomberg analysis.Ship-tracking data indicated only two inbound commercial transits on Tuesday morning, following two outbound movements on Monday.Though Iranian media reported that 24 vessels had transited the Strait of Hormuz over the past 24 hours with authorization from the Islamic Revolutionary Guard, analysts said such figures are difficult to verify due to frequent electronic interference and potential data overlap with smaller coastal craft.President Trump has expressed continued hope for an interim peace deal, even as Iran signaled potential friction in negotiations following escalating hostilities involving Israel in Lebanon.Iranian officials are reportedly reviewing a "final text" to be sent to the US, while reiterating concerns that Washington has previously failed to uphold commitments in earlier discussions.Meanwhile, regional shipping patterns have also been affected by the US blockade of Iranian-linked vessels in the Gulf of Oman. The US Central Command said on Monday that 121 commercial vessels had been rerouted as a result of recent security measures.Maritime tracking has been further complicated by persistent AIS signal interference in the region, with vessel counts likely to be revised as ships re-emerge outside high-risk zones.Industry analysts say Iranian and Iran-linked vessels have frequently switched off tracking systems when approaching the Strait, a practice that predates current tensions and can leave ships untraceable for extended periods.