The petrol-producing unit at Nigeria’s 650,000 barrel-per-day Dangote refinery has been taken offline following catalyst leaks and other technical issues, with repairs expected to last at least two weeks, two sources familiar with the matter told Reuters on Wednesday.
Industry monitor IIR Energy reported that the refinery’s 204,000 bpd Residue Fluidised Catalytic Cracking Unit (RFCCU) has been out of operation since August 29. Dangote did not immediately respond to requests for comment.
The refinery, which began operations last year, has significantly ramped up output and altered global oil trade flows. Its first petrol exports to the United States are expected to arrive in New York later this month, according to ship-tracking data from Kpler. However, the facility has faced repeated outages. Reuters reported in May that the RFCCU was already expected to operate at reduced capacity through October due to earlier technical setbacks.
The latest shutdown is affecting petrol supplies in the Atlantic Basin, pushing up profit margins for US refiners despite the traditional end of the summer driving season. On Wednesday, US petrol futures crack spreads — the difference between refined fuel and crude prices — rose nearly 3 per cent to their highest since August 19, after an 8 per cent jump the previous day.
Meanwhile, a Bloomberg survey showed that the Organization of the Petroleum Exporting Countries (OPEC) increased crude output by 400,000 barrels per day in August, bringing total production to 28.55 million barrels per day. Saudi Arabia accounted for more than half of the increase, adding 230,000 barrels to reach 9.6 million barrels daily, though still below its OPEC+ quota of 9.756 million.
Iraq also boosted production by 120,000 barrels to 4.28 million barrels daily, overshooting its assigned quota. Other OPEC+ members, including those with voluntary cuts, collectively produced 205,000 barrels per day above their target.
OPEC+ members are set to meet on Sunday to review market conditions and could consider further raising output. The coalition has already restored about 2.5 million barrels per day of supply since April, equivalent to 2.4 per cent of global demand, in a bid to reclaim market share and ease pressure from US President Donald Trump to lower oil prices.
Brent crude futures, the international benchmark, fell 1.9 per cent on Wednesday to around $68 per barrel following reports of possible additional supply increases. Prices have dropped about 9 per cent this year, offering some relief to consumers but posing financial challenges for major producers, including Saudi Arabia and US shale firms.
