The Dangote Petroleum Refinery is decreasing its crude oil imports from the United States and is instead sourcing a greater proportion of Nigeria's oil for processing, as reported by Bloomberg. 

The report indicates that in the third quarter, the refinery, which has a capacity of 650,000 barrels per day, is expected to obtain over 80% of its feedstock from domestic suppliers, an increase from less than 75% in the previous quarter, based on tanker-tracking data and trader insights. 

It has been noted that oil prices faced downward pressure last month due to reports suggesting that the refinery intended to resell some of the US crude it had previously acquired, highlighting the significant influence Dangote has within the Atlantic basin petroleum markets. 

The refinery's strategy to reduce its reliance on foreign crude may result in an increased availability of US export barrels for other buyers. This shift could accelerate in the upcoming months. Additionally, it was announced that the Federal Government would commence selling crude to Dangote in the local currency starting October 1.

The extent of supply that will be traded under the current system remains uncertain; however, should the 450,000 barrels designated for local consumption be depleted, Dangote may find itself with minimal need for imported crude.

The $20 billion Dangote refinery located in Lekki, Lagos, has processed over 56 million barrels of crude since December, as it has completed its test runs and gradually increased its processing capacity. Notably, 78 percent of this crude has been sourced locally.

A company representative informed Bloomberg earlier this month that six cargoes of crude have been secured directly from the Nigerian National Petroleum Company Limited for the upcoming month. Typically, most Nigerian cargoes consist of approximately one million barrels each.

Additionally, two more shipments from Nigeria, along with two million barrels of WTI Midland, are expected to arrive in September, according to tanker-tracking data.

Over the six-month period leading up to September, the refinery will have averaged nearly 10 million barrels per month. There were expectations for a significant rise in American feedstock inflows earlier this summer.

Nevertheless, some of the US barrels purchased for this month and the next are reportedly being resold, a claim that the refinery refuted in late July.

Furthermore, it has canceled two tenders in which it sought to acquire an additional 6 million barrels of American crude for September, as reported by traders.

The modifications could potentially result in a reduction in the availability of Nigerian barrels for sale in European and Asian markets.

Dangote’s petroleum is anticipated to enter the market by September.