Bharat Petroleum to Tender for U.S. WTI Crude in Effort to Secure Cheaper Oil Supplies

New Delhi (The Uttam Hindu): Bharat Petroleum Corp (BPCL), an Indian state refiner, plans to issue a 4-month tender next week to purchase U.S. West Texas Intermediate (WTI) crude, aiming to secure more affordable oil from the world’s leading producer, according to a source familiar with the matter. The refiner intends to buy one million barrels of WTI each month for delivery starting in May or June, with the contract extending for four months. BPCL has not responded to Reuters' request for comment on the matter.

Last year, BPCL awarded a similar tender to European oil major BP. The Indian refiner routinely purchases U.S. oil to supply its three refineries, which together have a combined processing capacity of 706,000 barrels per day. India's imports of U.S. oil reached their highest level in over two years last month, as refineries in the country sought alternative sources of crude following tighter U.S. sanctions on Russian producers and shippers. In line with this shift, India plans to significantly boost its energy imports from the U.S., with a target of raising the total to $25 billion from around $15 billion last year.

According to ship tracking data from Kpler, the U.S. exported about 357,000 barrels per day (bpd) of crude to India in February, a notable increase from 221,000 bpd in the previous year.