Dangote Petroleum Refinery’s increasing demand for Nigerian crude oil is providing crucial support to the country’s oil market, boosting premiums for key crude grades and helping sustain demand amid uncertainty in global energy markets.

The refinery’s growing crude intake has strengthened the pricing of Nigerian oil grades compared with competing Angolan crudes, as geopolitical tensions in the Middle East continue to influence global crude trade patterns, according to a Bloomberg.

The trend underscores the refinery’s expanding influence within Nigeria’s oil industry and its rising role in driving domestic crude consumption.

The report stated that Dangote Refinery’s growing crude purchases have tightened supplies in the Nigerian crude market, leading to stronger premiums for several of the country’s export grades.

Nigerian crude grades including Bonga, Escravos and Bonny Light scheduled for July loading are being offered at premiums of between $5.50 and $7 per barrel above the Dated Brent benchmark, with prices up to $2 per barrel higher than those seen for June cargoes.

Traders said that crude prices would likely be considerably lower without the support of Dangote Refinery’s purchases, which have helped absorb available supplies and tighten the market.

According to tanker-tracking data compiled by Bloomberg, Dangote Refinery processed more than 16 million barrels of Nigerian crude in June, underscoring its growing role in supporting domestic demand and influencing pricing dynamics in the country’s oil market.

The refinery’s crude intake equates to roughly 526,000 barrels per day, representing a significant share of its recently expanded processing capacity of 700,000 barrels per day.

The increase in crude purchases comes as Nigeria’s oil market benefits from stronger domestic demand, helping to support prices at a time when some rival African producers are facing softer international demand.

Nigeria typically exports and trades about 50 million barrels of crude each month, with Dangote Refinery’s purchases accounting for nearly one-third of that volume.

By contrast, Angola, Nigeria’s main regional competitor in the crude market, has been grappling with weaker demand from its largest buyer, China, creating additional support for Nigerian grades in the international market.