New York / New Delhi: State-Run Bharat Petroleum Petroleum Corp.
Ltd.
is exploring the volume of US crude oil, people who are familiar with these problems, because demand for fuel in Asian countries restore and weak US crude oil prices makes attractive purchases.
Fuel demand in India rose in July to the highest since April due to limiting pandemic and locking canceled in most states.
This country is the third largest rough importer and consumer in the world.
US crude oil prices are more attractive to Asian buyers as organizations of petroleum exporting countries (OPEC) and allies including Russian production holding back.
BPCL, the second largest state refiner in India, has bought around 9 million US crude oil barrels for delivery in August, September and October so far, two sources with knowledge of the problem.
It was more than half of 17 million barrels of US raw bharat bought between January and July, they said.
Asian countries, including China and South Korea, have also increased the purchase of US cheap crude oil barrels this month.
India mostly bought WTI Midland – The Light, Sweet Crude Grade produced in the Top area A.S.
Shale, The Permian Basin, because of the attractive price.
The price of WTI Midland, one of the most popular export values, traded near the weakest level in a year in early August.
India also bought West Texas Light (WTL) crude oil.
Other state-run distillers, Indian oil corp, have also been looking for barrels but are less active in the United States and are more focused on the West African raw market so far, traders said.
Since April, IOC has bought US oil under spot offer, one source that is familiar with the problem.
The state refiner limits the purchase of the top exporter of Saudi Arabia earlier this year, because the relationship between New Delhi and Riyadh has changed acid because of the increase in oil prices.
But the refiners continue normal purchases in June when Saudi Arabia and other Middle Eastern countries supply liquid medical oxygen and medical assistance to help India fight the second wave of Coronavirus.
US crude oil exports have fallen in recent weeks because of fuel demand with burns throughout the world.
On average four weeks of the total exports of US crude oil sank only 2.4 million barrels per day (BPD) on Sunday to 6 August, the lowest since February 2019, according to US energy information administration.
However, analysts expect US exports to continue to grow.
“We believe that the ongoing resurrection of US crude oil to Asia must continue in the coming weeks,” JBC Energy said in a note.
Commodity traders Vitol sold 1 million barrels of US crude oil to BPCL for October, a source familiar with the problem.
Vitol, BPCL and IOC refused to comment.
US oil production slowly rebounded from its nadir during the first outbreak of the Pandemic Coronavirus.
In May, the last monthly available, AMDAL showed US output at 11.2 million BPD, after falling out one previous year at 9.7 million BPD.