Bharat Petroleum Corporation (BPCL) has acquired one million barrels of US West Texas Intermediate (WTI) crude oil for August delivery. The purchase was made through a tender from trading house Vitol at a premium of approximately $6 per barrel to dated Brent.
This move by BPCL, alongside Japan’s Taiyo Oil’s acquisition of 2 million barrels of US crude, highlights a growing trend among Asian refiners to diversify their crude oil sourcing. This strategy is a direct response to escalating tensions in the Middle East, which have heightened supply risks.
The situation has become more precarious following renewed attacks and President Donald Trump’s recent statement indicating that a US-Iran ceasefire agreement was effectively over. Previously, Asian refiners had curtailed their purchases of US crude. BPCL has reportedly chartered an Aframax tanker, capable of carrying up to 600,000 barrels, to transport this significant volume of crude.
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