Reportedly, BPCL and BP ink a four-month agreement for the purchase of US oil
According to trade sources, BP and state-run Indian oil refiner Bharat Petroleum Corp have reached an agreement for the purchase of one million barrels of U.S. West Texas Intermediate (WTI) crude each month for a period of four months. They said that BPCL will begin receiving the oil deliveries in June.
According to the sources, the Indian refiner has further purchased 2 million barrels of WTI oil via a spot tender for loading in April. With three refineries that can handle 706,000 barrels of crude per day combined, BPCL often purchases American oil for its operations.
According to one of the sources, WTI would fulfill BPCL’s low-sulfur crude need since American crude has superior economics and quality than oil from the Mediterranean and West Africa.
When compared to the current year, when it closed its 156,000 bpd Bina refinery in central India for a month for maintenance, BPCL is anticipated to process more oil in the next fiscal year, which begins in April. Additionally, it has shut down sections of its 120,000 bpd refinery in Mumbai for upkeep. When Reuters sent BPCL an email requesting comments, BPCL did not reply.
