India Buys More Nigerian Crude as Dangote Turns to Cheaper US Oil

Indian refiners are increasing their imports of Nigerian crude oil to diversify away from Russian barrels, under pressure from US diplomatic influence. Indian Oil Corporation secured one million barrels of Nigeria's Agbami crude for September delivery, while Bharat Petroleum locked in cargoes for September and October.

The move comes as Indian refiners have slowed their purchases of discounted Russian crude since late July. Dangote Petroleum Refinery in Nigeria, facing challenges in securing local crude supply, has turned to cheaper US oil, with data showing a record intake of 60,000 barrels per day in July.

The refinery, running at 85% capacity, plans to boost gasoline output and potentially export to markets like Oman and Ivory Coast. Despite Nigeria's vast reserves, the country's crude production is facing challenges, leading to increased reliance on US imports.

Analysts suggest that full capacity at the Dangote refinery may not be achieved until late 2026 due to maintenance needs and mechanical challenges. The complex global oil market.