India buys first ever US crude oil, to step up purchases
New Delhi / SINGAPORE: India, the third largest oil importer, imports US oil for the first time after Indian Oil Corp has bought a cargo to be delivered in October.
The purchase comes after Prime Minister Narendra Modi’s visit to the United States. In June, when President Donald Trump said his country hopes to export more energy products in India.
The IOC has bought 1.6 million barrels of US crude oil, heavy, high sulfur content and four million barrels west of Canada Select to be delivered to a very large crude carrier, said AK Sharma, chief COI , Reuters.
PetroChina was awarded the tender to sell the cargo and must instruct oil on the US Gulf Coast, a commercial source with direct knowledge of the sale said.
The cargo was shipped evaluated on a basis that is “very competitive” compared to Basra Light, Sharma said.
“As long as prices remain competitive, we are going to buy more crude from the United States,” he said.
The IOC had to obtain a special permit from the Ministry of Transport to buy the cargo on a provided basis, local regulations are favorable to the use of Indian carriers marked for imports, Sharma said.
India is the last Asian country to buy US crude after South Korea, Japan, China, Thailand, Australia and Taiwan as countries seek to diversify oil imports from other regions after OPEC cuts have raised the price of crude oil And bitter Middle East or tones with high sulfur content.
Indian refineries look for these heavy and rich qualities of sulfur as raw material after the changes in their plants, which facilitates the processing of these types of crude, which are usually sold at a lower cost compared to other types of hydrocarbons .
The United States could become an alternative source for Indian companies to these notes.
A second Indian refinery Bharat Petroleum Corp Ltd also plans to buy its first crude oil cargo in the United States and issue a tender notice.