NEW DELHI: India is set to emerge
as a key market for American crude exports in coming months, as refineries in
that Country are ramping up “test” purchases of U.S. grades to diversify their
imports. U.S. exports recently set a weekly record with nearly 2 million
barrels of crude a day sent overseas. But shipments to India have been rare,
with just a few deliveries since the U.S. lifted its ban on crude exports in
late 2015. Indian refineries are starting to increase purchases as the Country
seeks to secure more supply from outside the Middle East. Refiners are testing
both U.S. sweet and sour crudes in their facilities, a common practice when
importing crude from new sources.
“A lot of these (Indian refiners) want to see what it’s like if
they run it,” said one Houston-based oil broker.
“They want to get a taste of U.S. crude.” Those refiners are
taking advantage of a wide spread between U.S. oil and other global benchmarks,
which has created an attractive discount on American crude grades.
Indian refiners Indian Oil Corp, Bharat Petroleum Corp and
Hindustan Petroleum Corporation Limited were given a special permission by the
Shipping Ministry to import oil from the United States until March. “They’ve
been stepping up to be a sizeable importer; they’re looking to diversify away
from the Middle East,” said John Kilduff, partner at energy hedge fund Again
Capital LLC in New York.
Source: Dailyshippingtimes.com
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