India takes US crude that will arrive in China after tariffs

NEW DELHI: An Indian state refiner has approached to buy American oil That was on its way to China but it should have arrived after new fees were applied.

Bharat Petroleum Corp bought one or two cargoes of US crude that were recently diverted from its original destination of China, refineries director R Ramachandran said in an interview. He didn’t identify the seller, how big the shipments were, or the name of the ships. It’s possible BPCL could buy more American oil that was headed to China, he said.

Beijing announced that it would impose the 5% levies, the first Chinese tariffs on US oil, on August 23 and entered into force on September 1. Six oil tankers carrying about 12 million barrels of US crude oil were heading to China at that time. of the announcement At least one of those ships arrived before the deadline, while another ship may have unloaded its cargo at a port near Qingdao before the rates entered into force.

Unipec, the commercial arm of Chinese state oil giant Sinopec, offered US crude that could not reach the Asian country before September 1 at the end of August. At least three potential Asian buyers received offers from Unipec, according to people with knowledge of the matter.

Indian refiners have increased their purchases of American oil this year as supplies from Iran and Venezuela were hit by White House sanctions. The Asian nation bought an average of 287,000 barrels of US crude a month in this year through May, compared with a monthly average of 131,000 barrels in 2018, according to Energy Information Administration data.

China was the largest foreign buyer of US crude in the middle of last year, but imports subsequently declined as the trade dispute worsened. Purchases rebounded again this year, reaching 1.5 million tons in July, according to data from the general customs administration.

Ramachandran also said that BPCL is looking to process US crude West Texas Intermediate Light and Louisiana Light Sweet, two US qualities that the Indian refiner has not yet bought.