Nigeria's biggest refinery imports UAE crude for first time

Key Facts

In a development reshaping global oil flows, Nigeria's largest refinery has imported UAE crude for the first time, according to traders familiar with the deal. The move comes as the 650,000-barrel-per-day facility seeks to diversify supply sources and reduce reliance on Nigerian crude, which has suffered from declining domestic production.

The shift follows the UAE's exit from OPEC late last year, which gave it freedom to raise output to near-record levels of around 4 million barrels per day. According to market data, UAE crude is believed to be priced competitively relative to African grades, making it attractive for refiners facing local supply challenges. The giant Dangote refinery in Nigeria had previously struggled to secure domestic crude due to long-term contracts and maintenance.

In terms of prices, benchmark Brent crude closed at $85.50 per barrel on July 1, 2026, per market data, while the market monitors the impact of these new flows on grade differentials. Upcoming US weekly inventory data and OPEC monthly reports in the coming days may provide further clues on market balance.