IOC’s June oil imports to be via tenders after snap 9 mn bbl deal: Report

By Nidhi Verma and Florence Tan

NEW DELHI (Reuters) – Indian Oil Corp, the country’s top refiner, will seek oil for June arrival via tenders after snapping up 9 million barrels of prompt supplies as it delayed maintenance plans for the Paradip refinery, a source familiar with the matter said.

The refiner has deferred a 40-day maintenance shutdown of its 300,000 barrels per day Paradip refinery to August-September from April-May to gain from improved margins for oil products, the source said.

On Friday, IOC purchased 9 million barrels of crude which are expected to be delivered in May.

The refiner bought 3 million barrels each of Abu Dhabi’s Upper Zakum and Murban crude from a European trader, the first source and traders said. IOC also purchased 1 million barrels each of Congolese Djeno crude, Nigeria’s Agbami and Gabon’s Mandji crude from two oil majors and a European trader, they said.

IOC may have paid $13 a barrel above Dubai quotes for the Upper Zakum crude supplies, traders said, although the first source said premiums for the cargoes were below $10 a barrel.

In addition to IOC, Reliance Industries has also delayed three weeks’ maintenance shutdown of a crude unit at its export focussed refinery to September.

(Reporting by Florence Tan and Nidhi Verma; Editing by Susan Fenton)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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