The Organization of Petroleum Exporting Countries said supplies from Nigerian-based Dangote Refinery and Petrochemicals will put pressure on the performance of North West Europe (NWE) Gasoil.

OPEC said this in its monthly Oil Market Report for June 2024.

“Upside potential for higher production levels from Nigeria’s Dangote refinery, coupled with strong flows from the Middle East and new supplies from the Mexican Olmeca refinery, will likely exert pressure on NWE gasoil performance in the mid-term,” OPEC said.

Europe is one of the world’s largest purchasers of refined petroleum products and relied on imports from Asia and the US after the European Union banned the use of Russian diesel in the bloc.

However, the 650,000-capacity refinery which is owned by Africa’s richest man, Aliko Dangote, is eyeing the wider European market after International Oil Companies stopped supplying it crude oil

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin announced the company has exported its first jet fuel cargo to Europe as it rapidly scales production.

The refinery has exported 90 per cent of its 3.5 billion litres of jet fuel and diesel to Europe over alleged lack of support from the government.

“It is good to note that from the start of production, more than 3.5 billion litres, which represents 90 per cent of our production, have been exported,” Edwin said.

BP is currently transporting its first jet fuel cargo to Rotterdam from Dangote, after being awarded part of a 120,000 metric tonnes tender offered for the end of May, according to S&P Global.

OPEC said, “In June, the jet/kerosene crack spread in Rotterdam against Brent showed a slight decline, influenced by supply-side dynamics. Despite signs of improving air travel activities, subdued jet fuel demand from the aviation sector weighed on the product market.

“Going forward, European jet/kerosene demand is expected to see upward pressure as consumption levels from the aviation sector continue to pick up in the coming months.”