Oil Sector in Frenzy after New Report Says Dangote Refinery Petrol Unit May be Out for 3 Months

•EU, UK petrol exports to Nigeria fall from 200,000 bpd to 120,000 bpd 

•Oil price eases further, slumps to two-week low

Emmanuel Addeh in Abuja

The petrol unit at Nigeria’s 650,000 barrel-per-day Dangote refinery may be shut for between two to three months for repairs, industry monitor IIR Energy told clients on Thursday, which could lead to a tighter  market.

The unit has been shut since around August 29 after catalyst leaks, a Reuters report said yesterday. The refinery plans to attempt to restart the 204,000 bpd Residue Fluidized Catalytic Cracking Unit (RFCCU) on September 20, but major repairs and equipment replacement could keep the unit shut for months, IIR Energy said.

Reuters first reported on Wednesday that Dangote’s RFCCU was expected to be shut for at least two weeks. Dangote did not immediately respond to a request for comment to the news, the report said.

One petroleum products trader said the market for the motor fuel was already strong. “This just adds fuel to the fire,” the trader told Reuters.

The U.S. petrol futures crack spread has risen nearly 13 per cent so far this week, to its highest since August 19, while Northwest European gasoline profit margins have risen around 23 per cent to $19.31 as of Wednesday according to LSEG data, trading at their highest since late June.

Supply constraints in the market due to current and upcoming outages are enough to offset the seasonal decline in demand, noted Philip Jones-Lux, senior analyst at Sparta Commodities.

The Dangote refinery, which began processing crude in January 2024, has slashed the Europe to West petrol export trade significantly. EU and UK petrol exports to Nigeria fell from an average of about 200,000 bpd in 2024 to about 120,000 bpd in the first half of this year, according to Kpler data.

It has also shipped two petrol cargoes to the U.S. East Coast, expected to arrive in the New York area later this month, a major milestone as industry observers were closely tracking if and when the plant would produce fuel meeting U.S. standards

Meanwhile, oil prices eased about 1 per cent to a two-week low on Thursday on a surprise build in U.S. crude inventories last week and expectations that OPEC+ producers will increase output targets at a meeting this weekend.

Brent crude futures fell 65 cents, or 1.0 per cent, to settle at $66.95 a barrel, while U.S. West Texas Intermediate crude fell 49 cents, or 0.8 per cent, to settle at $63.48.

The U.S Energy Information Administration (EIA) said energy firms added 2.4 million barrels of crude into storage during the week ended August 29 as refineries headed into maintenance season.

Eight members of the Organisation of the Petroleum Exporting Countries (OPEC) and allies like Russia in OPEC+ will consider further increases to production in October at a meeting on Sunday, two sources familiar with the discussions told Reuters.

A potential OPEC+ production hike would send a strong signal that regaining market share takes priority over price support, said Tamas Varga, a senior analyst at PVM Oil Associates brokerage and consulting firm.

OPEC+ has already agreed to raise output targets by about 2.2 million barrels per day from April to September, in addition to a 300,000-bpd quota increase for the United Arab Emirates.

The post Oil Sector in Frenzy after New Report Says Dangote Refinery Petrol Unit May be Out for 3 Months appeared first on THISDAYLIVE.

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    Kwara South National Assembly Members Have Failed Their Constituents, Say Stakeholders

    Kwara South National Assembly Members Have Failed Their Constituents, Say Stakeholders

    Hammed Shittu in Ilorin

    Political leaders and stakeholders in Kwara South Senatorial District of Kwara state have passed a vote of no confidence in federal lawmakers representing the zone at the National Assembly.

    They accused them of failing to make meaningful impact on their constituencies since assuming office.

    A resolution issued in Ilorin after the strategic consultation with the theme, “Reawakening the Giant,” the leaders under the aegis of the Kwara South Development Initiative (KSDI), expressed concern over the lack of dividends of democracy to the people of Kwara South Senatorial District since the election of members of the House of Representatives and House of Senate.

    Speakers at the meeting lamented what they described as years of poor representation at the National Assembly, insisting that the stunted growth of the district could be traced to the neglect of its federal legislators.

    Speaking on behalf of traditional rulers, the Olupo of Ajase-Ipo, Oba Mohammed Bolaji Alebiosu, said the lawmakers had shown no genuine interest in the welfare of their people.

    He declared that none of the legislators had ploughed back into the zone since their election, adding that communities were often abandoned whenever they sought their support.

    “Can anyone see the impact of any member of the National Assembly representing us?” the monarch asked.

    “They have failed to touch the lives of their constituents. If you invite them for religious or community development purposes, they will not show up.

    “We have not benefited anything from them, and the truth must be told. But when they come back during campaigns, we will pay them back in their own coin”, he added.

    Oba Alebiosu further urged the electorate ahead of 2027 to collect whatever incentives politicians offer but ensure they vote for credible candidates.

    Convener of the KSDI, Dr. Johnson Adewumi, also faulted the record of political representation in the district since 1999, describing it as “weak and ineffective.”

    He said despite producing five senators and several House of Representatives members, the region had no tangible project to show.

    “Our citizens have chaired several committees in both chambers, yet there is nothing of value in the entire Kwara South.

    “This is unacceptable. If those we send to represent us will not change, then we must change ourselves,” he said.

    Adewumi noted further that the summit was aimed at rekindling patriotism, tackling insecurity, and promoting sustainable development in the zone.

    He stressed that government alone cannot solve all problems, hence the need for collective action.

    In his remark, a member, Board of Trustees of TETFUND representing North Central, Engineer Nurudeen Adeyemi, commended the convener for the initiative, saying it’s a form of reawakening the spirit of community development in Kwara South.

    Also speaking at the event, the State Chairman of the All Progressives Congress (APC), Prince Sunday Fagbemi, admitted that the performance of the lawmakers was below expectation.

    He assured that the party would no longer present non-performing candidates for elective positions.

    “Anybody without good intentions for Kwara will not be allowed to occupy elective office again.

    “APC will critically vet the antecedents of all aspirants. I know the governor will not impose any candidate on us,” Fagbemi said.

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    Hammed Shittu in Ilorin Political leaders and stakeholders in Kwara South Senatorial District of Kwara state have passed a vote of no confidence in federal lawmakers representing the zone at

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