U.S. jet fuel imports are set to hit their highest level in two years this March, driven largely by shipments from Nigeria’s Dangote refinery to North America.
Analysts suggest this influx could ease aviation fuel prices ahead of the peak summer travel season, Reuters reported.
The 650,000 barrels-per-day (bpd) Dangote refinery, Africa’s largest, is rapidly reshaping global fuel markets.
Initially challenging European refiners in gasoline exports, the facility is now making strides in the U.S. jet fuel market, positioning itself as a key supplier in the Atlantic Basin.
In March alone, six vessels carrying approximately 1.7 million barrels of jet fuel from Dangote arrived at U.S. ports, according to Kpler ship-tracking data.
Another shipment, 348,000 barrels aboard the Hafnia Andromeda, is expected to reach Everglades terminal on March 29.
This surge has pushed total U.S. jet fuel imports to 226,000 bpd, the highest level since February 2023.
While Nigeria is not expected to become a regular supplier to the U.S., the temporary shutdown of Phillips 66’s Bayway refinery in New Jersey created a rare arbitrage opportunity for Dangote’s jet fuel, according to Sparta Commodities analyst James Noel-Beswick.
However, this window is expected to close soon due to rising U.S. jet fuel inventories.
The surge in imports has also increased demand for jet fuel storage in Houston and New York Harbor. U.S. jet fuel stocks ended February at 45.2 million barrels, the highest level for the month since 1999, according to the U.S. Energy Information Administration (EIA).
Future Outlook
- U.S. refiners’ jet fuel yields hit a record high in 2023, reflecting stronger demand relative to other transportation fuels.
- The EIA projects U.S. jet fuel consumption will reach an all-time high by 2026.
Meanwhile, the Dangote refinery continues to scale up operations, supplementing domestic crude with international supplies.
The U.S. has emerged as a key crude oil supplier, with Dangote receiving over three million barrels of American crude this month, according to Bloomberg.
As the global energy landscape shifts, Dangote’s increasing presence in the U.S. fuel market signals a new era of trade flows and competition.
