A new chapter in the African crude oil trade: the strategic realignment of the Dangote refinery to Saharan Blend

Dangote refinery buys Algerian crude oil for the first time, setting an example for strategic diversification in the African energy market.
Afrikas größte Ölraffinerie Saharan Blend in Nigeria im Sonnenuntergang

The African energy landscape is changing - subtly, but with far-reaching effects. Nigeria's Dangote refinery, Africa's largest at 650,000 barrels per day, recently made headlines when it acquired its first shipment of Algeria's Saharan Blend crude oil. What sounds like a routine transaction actually signals a sea change in the way African refiners deal with regional and global crude markets.

1. beyond national borders: The need for diversification
Until now, Dangote has almost exclusively used Nigerian crude oil. The purchase of 1 million barrels of Saharan Blend - a light, sweet crude oil with attractive price and logistics characteristics - demonstrates a clear strategy: maximum flexibility and profitability instead of national solo efforts.

2 Europe's downturn, Africa's opportunity
Declining demand in Europe pushed the price of Saharan Blend to a rare minus against the North Sea benchmark. Dangote skillfully exploited this market window - an example of how global impulses influence intra-African trade.

3. price beats politics: Sophisticated purchasing strategy
Dangote is not buying for political reasons, but rather tactically and cleverly based on price and technical suitability. A sign of increasing professionalism in the African energy sector.

4. bigger picture: more regional integration
Africa is developing from an exporter to a self-supplier. New refineries in Nigeria, Angola and Egypt are creating competition and market diversity - and increasing the demands on procurement and pricing strategy.

5 Outlook: Profitability through agility
The purchase of Saharan Blend shows: Africa's refineries are on the path to greater sovereignty, competitiveness and strategic action. Crude oil trade is increasingly determined by market logic - not proximity.


 

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