Nigeria and other West African oil-producing countries are emerging as critical suppliers to global energy markets, as buyers increasingly seek alternatives to Middle Eastern crude and refined products following disruptions linked to the closure of the Strait of Hormuz, Argus Media said.

The crisis is reshaping crude trade flows across the Atlantic Basin and positioning West Africa, particularly Nigeria, as a strategic hub for both crude oil and refined petroleum products as geopolitical tensions continue to disrupt traditional supply routes.

Speaking on evolving market dynamics, Vice President, Business Development, Oil at Argus Media, Elliot Radley, said alternative supply hubs in the Atlantic Basin, including West Africa and Latin America, have attracted growing attention from global buyers in recent weeks.

According to him, the closure of the Strait of Hormuz to crude and refined products tanker traffic has intensified the search for replacement supplies, creating new opportunities for producers outside the Middle East.

Radley noted that West Africa’s geographical location places the region in a favourable position to serve customers across multiple markets.

“Alternative supply hubs in the Atlantic basin, such as West Africa and Latin America, have come under increased focus in recent weeks as the Strait of Hormuz remains closed to crude and refined products tanker traffic. West Africa’s centralised geographical location means sellers are able to meet buyers to both the east and the west – a particular benefit given West Africa’s relative abundance of medium crudes, global supply of which has fallen sharply in recent weeks,” he said.

The Argus executive added that rising refining activity within West Africa, especially in Nigeria, is further strengthening the region’s role in global fuel supply chains.

“Rising refinery production in West Africa, particularly Nigeria, has also driven European buyers to import much-needed jet fuel as regional supplies tighten following the Iran war,” Radley stated.

The development comes as Nigeria continues to expand domestic refining capacity, driven largely by investments aimed at reducing dependence on imported petroleum products and positioning the country as a net exporter of refined fuels.
He stressed that increased jet fuel exports from Nigeria could help address supply gaps in Europe, where energy security concerns have intensified following disruptions to traditional supply sources.

Beyond West Africa, Radley highlighted the growing significance of Latin America in meeting global crude demand.
He said the region has rapidly evolved into one of the most dependable crude supply centres in the Atlantic Basin, supported by rising production in Brazil and Guyana.

“Latin America has quickly become one of the most important and reliable crude supply sources in the Atlantic Basin, and globally, as production rapidly ramps up in the region led by projects in Brazil and Guyana, and the continued closure of the Strait of Hormuz leaves buyers scrambling for alternative sources,” he said.

Particular attention is being placed on Guyana, whose oil sector has witnessed remarkable growth over the past decade.

According to Radley, Guyana’s crude output is expected to exceed 1 million barrels per day by the end of 2026 and rise above 1.7 million barrels per day before the end of the decade.

“Guyanese crude output is on track to breach 1mn b/d by the end of 2026 and over 1.7mn b/d by the end of the decade, rivalling the size of Nigerian crude output. All of Guyana’s crude production is currently exported, with crude supply mainly sent to Europe, the US, and increasingly to Asia,” he explained.

He noted that crude grades produced in Guyana and Brazil are increasingly attractive to refiners because of their quality and versatility.

“Guyanese and Brazilian crude is light-to-medium sweet and in high demand globally given its relative ease of use as a feedstock in the majority of refineries and its ability to produce high proportions of key transport fuels such as diesel, jet, and gasoline,” Radley said.

He added that demand has been particularly strong in Europe, where sanctions on Russian oil have altered traditional trade patterns, and in Asia, where access to some Middle Eastern grades has become more challenging.

To support growing market activity and improve transparency in crude pricing, Argus announced the launch of Guyanese crude trading on its Argus Open Markets platform.

According to Radley, the initiative will allow market participants to bid, offer and initiate trades for key Guyanese crude grades, including Golden Arrowhead, Payara Gold, Unity Gold and Liza.

The launch follows the introduction of West African crude grades on the platform last year, a move Argus said has led to increased industry participation and strengthened transparency in global oil price formation.

“The Guyana launch builds on the successful introduction of West African crudes on AOM last year, which has seen growing industry engagement and use in price formation, further reinforcing Argus’s key role in delivering transparency to global crude markets,” Radley added.