Reliance Industries Ltd. took an unusual move by offering US oil to other buyers in Asia last week, a deviation from the typical practice among refiners who seldom engage in reselling crude shortly after purchase, Bloomberg reported.
According to insiders familiar with the matter, India’s largest private processor attempted to sell West Texas Intermediate Midland crude for May loading. However, Reliance has yet to respond to requests for comment on this development.
In the wake of the 2022 Russia-Ukraine conflict, India diversified its oil sources, capitalising on cheaper Russian oil disregarded by other purchasers. However, recent US sanctions on Moscow and uncertainties surrounding Sokol crude shipments have caused a slowdown in purchases.
Recently, India has resumed its purchases of Sokol, potentially prompting major buyers like Reliance to explore pricier alternatives. Earlier this month, US officials indicated surprise at New Delhi’s processors’ decision to halt Russian petroleum purchases.
WTI Midland, Sokol, and the UAE’s Murban are all comparable varieties known for yielding more diesel when refined compared to alternative crudes.
However, sources did not clarify whether Reliance’s resale of US oil was linked to the resurgence of Sokol purchases. Additionally, it remains uncertain whether Russian crude flows to India will rebound to last year’s peak levels.
Before offering American oil, Reliance also made attempts to sell cargoes of Murban crude for April-May loading, as per the sources.
