Brokers halt bids for Russian oil cargo after US sanctions, Indian refiner says By Reuters
Author: Nidhi Verma
NEW DELHI (Reuters) – Brokers supplying Russian oil are not offering cargo because of new U.S. sanctions targeting Russian producers, tankers and insurers, according to the finance chief of an Indian refiner Bharat Petroleum (NSE:).
Company and other state-owned refineries – Indian Oil Corp, BPCL, Hindustan Petroleum (NSE:) and Mangalore Refinery and Petrochemicals buy Russian crude on the spot market, mostly from traders, and the delays are forcing them to look for alternatives.
“We have not received any new offers for the March (delivery) window. Traders are asking us to wait. We are waiting to get offers,” Vetsa Ramakrishna Gupta told Reuters on Wednesday.
“We are not expecting similar number of cargoes as we were getting in December and January,” Gupta said.
Dealers start offering loads by the 15th of the month for pickup in the following month.
The refinery receives an average of 16-17 loads of Russian oil per month, which covers about 35% of its needs. Like other Indian refiners, it saw a decline in January, missing three cargoes, and now faces a further fall in inventories in March.
To make up for the shortfall, Indian refiners have tendered oil imports and are buying grades such as Murban from Abu Dhabi.
BPCL has also issued an annual tender seeking supply of 1 million barrels of Murban every month during the year.
Gupta said his company may issue a mini-tender in March seeking US oil cargoes of up to six months, as higher premiums for Middle East spot crude become more attractive.
India is expected to increase its purchases of US oil and gas following US President Donald Trump’s announcement that his administration will seek to maximize US oil and gas production.
