The refinery fuels U.S. jet fuel demand amid tight supplies. Phillips 66’s Bayway shutdown created a gap Dangote quickly filled. Traders say storage leases in Houston and New York jumped fivefold. This signals a potential price drop before summer.
Nigeria’s Dangote refinery is now a key supplier of jet fuel to the U.S. This follows a surge in imports due to refinery outages. The 650,000 bpd facility has shipped 1.7 million barrels since March. Another 348,000-barrel cargo arrives soon.
The refinery fuels U.S. jet fuel demand amid tight supplies. Phillips 66’s Bayway shutdown created a gap Dangote quickly filled. Traders say storage leases in Houston and New York jumped fivefold. This signals a potential price drop before summer.
Analysts warn the trend may not last. Sparta Commodities analyst James Noel-Beswick cites narrowing price gaps. U.S. stockpiles are already at 24-year highs. Yet, Dangote’s shipments prove its global competitiveness. The refinery now rivals European suppliers in the Atlantic market.
Jet fuel consumption is set to grow long-term. However, economic uncertainty may slow near-term demand. If U.S. refiners restart units, Nigerian flows could fade. For now, Dangote fuels U.S. jet fuel needs, showcasing its swing-supplier potential.
Transitioning forward, market watchers expect volatility. TankTiger reports storage firms are preparing for shifts. Meanwhile, airlines welcome cheaper fuel ahead of peak travel. The refinery’s role, though possibly temporary, marks a milestone for African energy exports.
