WTI Midland, Sokol and the UAE’s Murban are all similar varieties which yield more diesel than alternative crudes when refined.
By Sharon Cho and Serene Cheong
Reliance Industries Ltd. offered US oil to other buyers in Asia last week, an unusual move for refiners who rarely seek to resell crude within weeks of buying it.
India’s biggest private processor tried to sell West Texas Intermediate Midland crude for May loading, according to traders with knowledge of the matter who asked not to be identified as the information is private. Reliance didn’t immediately respond to a request for comment.
India moved away from some of its more traditional suppliers after the invasion of Ukraine in 2022, taking advantage of cheaper oil from Russia shunned by other buyers. Purchases cooled recently as US toughened sanctions on Moscow and cargoes of Sokol crude, a key grade, were among those left in limbo.
The South Asian country has recently resumed purchases of Sokol, which may have encouraged large buyers like Reliance to sell on more expensive alternatives. US officials said earlier this month they had not expected New Delhi’s processors to stop buying Russian petroleum.
WTI Midland, Sokol and the UAE’s Murban are all similar varieties which yield more diesel than alternative crudes when refined.
The traders did not specify whether the reselling of the US oil by Reliance was linked to the resumption of Sokol purchases. It is also still unclear if flows of Russian crude to India will return to last year’s record levels.
Reliance also attempted to sell cargoes of Murban crude for April-May loading before offering the American oil, the traders said.
First Published: Apr 16 2024 | 6:13 PM IST