Singapore, Aug 3: Indian Oil Corp. (IOC) has bought a Very Large Crude Carrier (VLCC) of October-loading Angolan crude in its latest tender, on top of the first VLCC of West African and 600,000 barrels of Brunei crude reported earlier, traders said on Friday.
This brings to 4.6 million barrels the total volume of October-loading crude IOC has bought through tenders this week, the highest volume in a month and a half.
The state-run refiner is also looking for more light sweet crude, having issued a new tender for end-September and October-loading West African and regional light sweet crude, traders added. The new tender closes on Monday.
The second VLCC that IOC bought comprised two cargoes of 1 million barrels each of Angolan crude: one Kissanje and one Nemba.
These were on top of the first VLCC comprising Angolan Girassol and Nigerian Brass River cargoes reported earlier, traders said. IOC also bought 600,000 barrels of Brunei's Seria Light crude in the first batch.
Traders expressed surprise at the large volume of West African crude IOC bought, given the wide Brent/Dubai spread.
The front-month Brent/Dubai Exchange of Futures for Swaps (EFS), which has been hovering above $5 for the past month, makes purchases of Brent-related West African crude expensive compared with Middle Eastern crude.
Nigerian Brass River crude traded at a premium of $3.85-3.90 a barrel to Dated Brent, two traders said, while heavier Girassol fetched a $0.60-1.00 discount to Dated Brent. European trader Vitol was awarded the first VLCC.
Kissanje was sold at around a $2.90 discount to dated Brent and Nemba at around a 20-cent premium, a trader said. Angolan state-oil Sonangol sold the second VLCC.
IOC also bought 600,000 barrels of Seria Light crude for the first time in possibly several years.
It was the first time in almost two months that the refiner bought Asia-Pacific crude.
The refiner bought the cargo of Seria Light crude from European major Total at around dated Brent plus $6.80 a barrel, traders said.
IOC, which has about 10 refineries spread across India for a total capacity of 1.204 million barrels per day, tenders several times a month to buy crude, mainly West African grades.
Reuters
This brings to 4.6 million barrels the total volume of October-loading crude IOC has bought through tenders this week, the highest volume in a month and a half.
The state-run refiner is also looking for more light sweet crude, having issued a new tender for end-September and October-loading West African and regional light sweet crude, traders added. The new tender closes on Monday.
The second VLCC that IOC bought comprised two cargoes of 1 million barrels each of Angolan crude: one Kissanje and one Nemba.
These were on top of the first VLCC comprising Angolan Girassol and Nigerian Brass River cargoes reported earlier, traders said. IOC also bought 600,000 barrels of Brunei's Seria Light crude in the first batch.
Traders expressed surprise at the large volume of West African crude IOC bought, given the wide Brent/Dubai spread.
The front-month Brent/Dubai Exchange of Futures for Swaps (EFS), which has been hovering above $5 for the past month, makes purchases of Brent-related West African crude expensive compared with Middle Eastern crude.
Nigerian Brass River crude traded at a premium of $3.85-3.90 a barrel to Dated Brent, two traders said, while heavier Girassol fetched a $0.60-1.00 discount to Dated Brent. European trader Vitol was awarded the first VLCC.
Kissanje was sold at around a $2.90 discount to dated Brent and Nemba at around a 20-cent premium, a trader said. Angolan state-oil Sonangol sold the second VLCC.
IOC also bought 600,000 barrels of Seria Light crude for the first time in possibly several years.
It was the first time in almost two months that the refiner bought Asia-Pacific crude.
The refiner bought the cargo of Seria Light crude from European major Total at around dated Brent plus $6.80 a barrel, traders said.
IOC, which has about 10 refineries spread across India for a total capacity of 1.204 million barrels per day, tenders several times a month to buy crude, mainly West African grades.
Reuters
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