U.S. jet fuel imports have surged to their highest level in two years, driven by shipments from Nigeria’s Dangote refinery. The influx is expected to lower aviation fuel prices ahead of the peak summer travel season, trade analysts and storage brokers said.
Africa’s largest refinery, with a capacity of 650,000 barrels per day, has begun reshaping global fuel trading dynamics. By supplying jet fuel to North America, it has created a new swing supplier in the Atlantic Basin, impacting market competition.
So far in March, six vessels carrying about 1.7 million barrels of jet fuel from the Dangote refinery have arrived at U.S. ports, ship-tracking data showed. Another vessel, Hafnia Andromeda, is scheduled to dock at the Everglades terminal on March 29 with approximately 348,000 barrels of jet fuel. These shipments have pushed total U.S. jet fuel imports this month to around 226,000 barrels per day, the highest level since February 2023.
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Dangote’s entry into the U.S. market follows its successful competition with European refiners on gasoline exports. While the Nigerian refinery is not expected to be a regular jet fuel supplier to the U.S., a temporary shutdown at Phillips 66’s Bayway refinery in New Jersey created an opportunity for Nigerian fuel to enter the market. Analysts predict that this opening will soon close or narrow due to rising U.S. jet fuel inventories.
Storage demand has also spiked, reflecting the surge in supply. Requests to lease jet fuel storage tanks in Houston and New York Harbor for April have soared to around 700,000 barrels, five to six times the usual monthly demand, a storage broker reported. This trend suggests that increased supply from Nigeria will contribute to lower jet fuel prices in the coming months.
Despite cheaper fuel, summer air travel could face challenges from economic pressures. A stock market downturn and declining consumer confidence may dampen demand, raising concerns about the aviation sector’s performance in the coming months.
U.S. jet fuel stocks ended February at 45.2 million barrels, the highest level for that month since 1999. Meanwhile, refiners have increased their jet fuel output to meet demand, setting a record last year. The U.S. Energy Information Administration projects jet fuel consumption will reach an all-time high in 2026.
Crediblenewsng.com
