India, the world’s third-largest oil importer, has sealed a first deal to import crude oil from the US and the shipment is expected to touch Indian shores in October. The deal, by state-owned Indian Oil Corp (IOC), comes within weeks of Prime Minister Narendra Modi’s visit to the US when President Donald Trump talked of his country looking to export more energy products to India. “We have bought 2 million barrels of crude oil from North America comprising 1.6 million barrels of US Mars crude and 400,000 barrels of Western Canadian Select,” IOC Director (Finance) A K Sharma. US Mars is a heavy, high-sulphur grade which will be processed at IOC’s newest refinery at Paradip in Odisha.
"Given the current international oil markets where the differential between Brent (the benchmark crude or marker crude that serves as a reference price for buyers in western world) and Dubai (which serves as a benchmark for countries in the east) has narrowed. “Even after including the shipping cost, buying US crude proved to be very cost competitive to us.” he said. Sharma said the company will buy more crude from the US if the market conditions remain favorable for such purchases.
Indian state-run refiner Bharat Petroleum Corp Ltd has also bought 1 million barrels of sour crude from the US for its 190,000 b/d Kochi refinery.
|Month||Group I - SN 500 Iran Origin||J-150 Singapore Origin||N- 70 South Korea Origin||Bright Stock-150|
|January 2017||570 – 585||585 - 600||560 - 565||975 - 985|
|February 2017||620 – 630||630 - 640||610 - 625||1000 - 1030|
|March 2017||640 – 650||650 - 660||630 - 645||1020 - 1050|
|April 2017||645 – 655||655 - 665||635 - 650||1025 - 1055|
|May 2017||710 – 715||685 - 695||655 - 665||1065 - 1085|
|June 2017||700 – 705||675 - 685||645 - 655||1055 - 1075|
|July 2017||715 – 720||690 - 700||660 - 670||1070 - 1090|
|Price movement since January 2017||Prices have gone up by USD 140 PMT (24%) in July 2017.||Prices have firmed up by USD 100 PMT (17%) in July 2017.||Prices have shoot up by USD 100 PMT (18%) in July 2017.||Prices have hike up by USD 100 PMT (10%) in July 2017|