Indian BPCL and Japan's Taiyo Oil buy US crude via tenders, sources say
- Taiyo Oil bought 2 million barrels of U.S. crude for delivery in early October
NEW DELHI/SINGAPORE: India’s Bharat Petroleum Corp and Japan’s Taiyo Oil bought crude from the United States this week, according to trading sources, as the refiners seek to diversify supplies amid the Middle East conflict.
BPCL bought West Texas Intermediate crude from trading house Vitol, four sources said.
Two of them said the refiner has booked an Aframax tanker, which is capable of carrying up to 600,000 barrels of crude, for the purchase. The oil was bought at a premium around $6 per barrel to dated Brent, they added.
Taiyo Oil bought 2 million barrels of U.S. crude for delivery in early October and the cargo was purchased at a premium of around $6 per barrel above ICE Brent, a separate trader said.
India’s BPCL says to shut crude unit at Mumbai refinery in November
Companies normally do not comment on commercial matters.
Asian refiners had reduced purchases of U.S. crude following the U.S.-Iran ceasefire agreement. But supply risks increased this week following fresh attacks by both sides and President Donald Trump’s Wednesday announcement that he believed the ceasefire agreement was “over”.
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