Reliance Industries makes first purchase of U.S. crude - sources
Reliance Industries Ltd
Reliance, the owner of the world’s biggest refining complex at Jamnagar, is joining state-run refiners Indian Oil Corp
For this purchase, Reliance bought 1 million barrels of West Texas Intermediate (WTI) Midland and a similar-sized cargo of Eagle Ford crude, both of which are expected to arrive in November, the sources said.
U.S. producer Occidental Petroleum Corp
Reliance did not respond to Reuters` email seeking comments.
There was also no reply to an emailed request for comment from Occidental sent outside of U.S. business hours.
Opportunities for Indian refiners to import more U.S. crude increased after the discount for West Texas Intermediate, the benchmark for U.S. crude, to global benchmark Brent stretched to its widest since 2015 during September.
State-run Indian refiners have bought a total 7.85 million barrels of oil from the United States so far.
India`s imports of U.S. oil follows Indian Prime Minister Narendra Modi`s visit to Washington in June when President Donald Trump said his country looked forward to exporting more energy products to India.
On Monday, Indian Oil, the country`s top refiner, received its parcel of the U.S. crude at the eastern port of Paradip, the company said in a statement.
Including the U.S. as a source for crude imports for refiners will go a long way in mitigating the risk arising from geo-political disruptions, Sanjay Sudhir, the joint secretary for international cooperation at the oil ministry, said in the Indian Oil statement.
U.S. crude oil shipments to India have the potential to boost bilateral trade by up to $2 billion, the U.S. embassy in India said in a statement on Monday.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.