U.S. jet fuel imports are on track to reach their highest level in two years this March, driven in part by shipments from Nigeria’s Dangote refinery to North America.
Analysts and storage brokers suggest this influx could help ease aviation fuel prices ahead of the peak summer travel season, Reuters reported.
The 650,000 barrels per day (bpd) Dangote refinery, the largest in Africa, is emerging as a key player in global fuel markets. Its exports are reshaping trade flows and positioning it as a new swing supplier in the Atlantic Basin.
Nigeria’s Dangote refinery is making waves in global fuel markets, challenging European refiners in gasoline exports and now competing in the U.S. jet fuel market.
In March alone, six vessels carrying about 1.7 million barrels of jet fuel from Dangote arrived at U.S. ports, according to ship-tracking data from Kpler.
Another vessel, Hafnia Andromeda, is expected to deliver an additional 348,000 barrels to the Everglades terminal on March 29.
This surge has pushed total U.S. jet fuel imports to around 226,000 barrels per day (bpd) this month, the highest level since February 2023.
Impact on U.S. aviation fuel prices
While not expected to be a regular supplier to the U.S., a temporary shutdown of the Phillips 66 Bayway refinery in New Jersey created a rare arbitrage opportunity for Nigerian jet fuel, according to Sparta Commodities analyst James Noel-Beswick.
However, he noted that this window will likely close soon due to rising U.S. jet fuel inventories.
The surge in imports has also driven a spike in demand for jet fuel storage in Houston and New York Harbor.
U.S. jet fuel stocks ended February at 45.2 million barrels, the highest level for the month since 1999, according to the U.S. Energy Information Administration (EIA).
The agency also reported that refiners’ jet fuel yields hit a record high last year, reflecting stronger demand relative to other transportation fuels. The EIA forecasts U.S. jet fuel consumption to reach an all-time high by 2026.
Africa’s largest refinery is still sourcing crude oil from international suppliers to supplement domestic deliveries as it scales up operations.
The United States has been a major source, with the refinery receiving over three million barrels of U.S. crude since the beginning of the month, according to Bloomberg.
