India petchem firm buys extra Saudi oil
Singapore, September 5, 2011
India-based Mangalore Refinery and Petrochemicals bought an extra cargo of Saudi Arabia's Arab Super Light for October, three sources familiar with the deal said on Monday.
The 600,000-barrel cargo is on top of the company's total purchase of about 20,000-22,000 barrels per day (bpd) from the Kingdom.
The cargo will help fill the refiner's requirement for sweet barrels after the company skipped awarding a tender for October cargoes last month. MRPL also failed to buy any sweet grades in its latest tender that closed on Friday, sources said.
"The participation was poor and offers were not attractive," said one of the sources with knowledge of the process, referring to Friday's tender.
MRPL operates a 236,400-bpd refinery in the coastal city of Mangalore in southern India.
Supplies of West African grades have been hit as Shell declared a force majeure on Nigerian Bonny Light crude from August to October following a pipeline incident.
This, coupled with strong demand from the US and Europe, has strengthened October spot differentials for West African crude, with Nigerian Qua Iboe trading at a four-month high premium.
MRPL has previously bought extra barrels from Saudi in July, as the world's top oil exporter unilaterally decided to raise supplies after Opec talks collapsed in June.
Saudi Arabia may increase official selling prices (OSPs) of October crude for Asian clients, as refiners across the continent process more, aiming to benefit from attractive margins for products from fuel oil to jet fuel. – Reuters