India has emerged as a key buyer of Nigerian crude oil in recent months, filling a gap left by the Dangote Petroleum Refinery’s pivot towards importing cheaper U.S. crude.
Traders say the move underscores shifting trade dynamics in the global oil market, as Asia’s third-largest economy seeks to secure diverse supplies amid fluctuating prices. Nigeria, Africa’s top oil producer, has seen reduced domestic refinery intake after the 650,000 barrels-per-day Dangote facility sourced multiple cargoes from the United States, citing cost competitiveness and quality preferences.
Industry analysts note that while India has long been a major destination for Nigerian Bonny Light crude, the latest surge in purchases could help offset potential revenue dips caused by changing refinery procurement patterns at home.
The development highlights the increasingly complex nature of global oil flows, where price arbitrage and refining economics dictate supply routes more than geographic proximity.
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