Back to Markets
Commodities● Neutral
BPCL Buys 1M Barrels US Crude at Around $6 Premium, Sources Say
Indian refiner BPCL bought 1 million barrels of US WTI crude for August arrival at a premium near $6 a barrel to Dated Brent, sources said. The deal shows Indian refiners continue to tap US supplies.
Continue with
India's Bharat Petroleum Corp bought 1 million barrels of U.S. West Texas Intermediate crude for August arrival through a tender, two sources said on Thursday.
The state-owned refiner purchased the oil from trading house Vitol at a premium of roughly $6 a barrel to Dated Brent, the people added. Companies typically do not comment on commercial transactions.
The deal underscores Indian refiners' continued appetite for U.S. crude, which has become a staple for Asian buyers as the discount to Middle Eastern grades widens. WTI's price advantage over Brent, the benchmark for most Asian crude imports, has made long-haul cargoes from the Gulf of Mexico cost-competitive even after accounting for freight.
For BPCL, which operates refineries in Mumbai, Kochi and Bina, the purchase adds to a slate of crude grades that includes Saudi Arab Light, Basrah and Russian Urals. The company's tender for U.S. crude comes as Indian refiners diversify supply sources and lock in cargoes for the second half of 2025.
Vitol, the world's largest independent oil trader, has been an active supplier of U.S. crude to Asian refiners. The premium of around $6 a barrel to Dated Brent reflects the cost of shipping from the U.S. Gulf Coast to India, a route that takes roughly 30 days.
The August arrival window suggests the crude will load in late June or early July. That timing overlaps with the summer driving season in the U.S., when domestic refineries typically run at high rates, tightening WTI supply.