Dangote refinery to free up more petrol volumes in global markets: OPEC

The Organization of the Petroleum Exporting Countries has said petrol production at Dangote refinery is expected to free up more volumes in the international markets.

The oil cartel said in its latest monthly report that the gasoline crack spread in Rotterdam against Brent simulated $78.28 ▲0.31% dropped further in November as ARA gasoline inventories experienced builds amid a lengthening gasoline balance in the region, subdued by winter-season demand-side pressures. 

It said the ongoing recovery in gasoline refinery output levels following heavy turnarounds and rising refinery runs likely exacerbated the already bearish market sentiment. 

OPEC said: “Moreover, the ongoing operational ramp-up efforts at Nigeria’s new Dangote refinery and its first gasoline exports to the international market likely weigh further on the European gasoline market. 

“Continued gasoline production from Nigeria, a country that has relied heavily on imports to meet its domestic fuel needs in the past, whether consumed domestically or exported, will most likely continue to free up gasoline volumes in the international markets and call for new destinations and flow adjustments for the extra volumes going forward.”