BPCL buys 1 million barrels of US crude via tender, sources say

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.


Also read: BPCL agrees to buy Videocon Energy’s stake in BPRL Ventures JV

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.

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".