Dangote Refinery’s jet fuel exports to North America are reshaping global fuel trading by establishing a new swing supplier in the Atlantic Basin. U.S. jet fuel imports are set to reach a two-year high in March, potentially lowering summer aviation fuel prices.
Competing with European refiners, Dangote’s shipments could impact U.S. domestic producers. Ship-tracking data shows six vessels carrying 1.7 million barrels have arrived in the U.S., with another expected on March 29.U.S. jet fuel imports hit 226,000 bpd in March, the highest since Feb 2023.
Dangote Refinery, now at 85% capacity, capitalized on a rare arbitrage due to a U.S. refinery shutdown. Analysts expect the window to close soon as U.S. fuel stocks rise. Jet fuel storage demand in Houston and New York surged to 700,000 barrels.
Increased Nigerian jet fuel supply may lower U.S. prices before peak summer travel, though economic concerns could impact demand. U.S. jet fuel stocks hit 45.2 million barrels in February, the highest for that month since 1999. Refiners’ jet fuel yield reached a record in 2023, with consumption expected to peak in 2026, according to the EIA.
