The Dangote Petroleum Refinery retained 13% of Nigeria’s crude oil exports as domestic supply in 2024, according to a new report by Reuters. This development increased Nigeria’s domestic share of oil exports from 2% in 2023 and slightly reduced the country’s exports to Europe.

Despite being a major net exporter of crude, Nigeria imported 47,000 barrels per day of US oil in 2024, which experts say is unusual for crude oil exporting countries. This situation is partly due to the Nigerian National Petroleum Company Limited (NNPCL) continuing to service its crude-for-loan obligations until 2029, as the demand for oil by domestic refineries increases.

The Dangote refinery, along with other new refineries in the global south, has reportedly altered the global flow of crude amidst sanctions on Russian oil. The 650,000 barrels per day capacity Dangote Petroleum refinery contributed to the increased volume of Nigeria’s crude imports from the United States. The refinery received its first shipment of US WTI in November 2024.

The report also stated that the volume of global crude export volume in 2024 declined by 2%, the first dip since the COVID-19 pandemic. This decline is attributed to weak demand growth and reshuffled trade routes due to conflicts, sanctions, and new pipelines and refineries.

The wars in Ukraine and the Middle East caused significant rerouting of tanker shipments, while sanctions on Russia and Iran forced importers in Europe and South America to seek new suppliers.

Following the outbreak of Russia’s war with Ukraine, European refiners reduced their imports from Russia while boosting purchases of oil from the U.S. and the Middle East. However, attacks on vessels in the Red Sea due to Israel’s war with Gaza led to higher shipping costs from the Middle East, prompting refiners to turn to the U.S. and Guyana.

Iraq’s exports dropped by 82,000 barrels per day, while the United Arab Emirates saw a decrease of 35,000 barrels per day. Meanwhile, Europe increased imports by 162,000 barrels per day from Guyana and 60,000 barrels per day from the US. While Europe and South America turned down Russia’s oil, India and China embraced it.

Other factors contributing to the reshuffling of oil trade routes include the expansion of Canada’s Trans Mountain pipeline to the country’s west coast, falling oil output in Mexico, and a halt in Libyan oil exports.