India\'s state-run Bharat Petroleum Corp (BPCL) has awarded its first-ever tender to buy Euro-IV diesel to European majors BP and Shell, trade sources said. The firm has bought 60,000 tonnes of two equal-sized cargoes at a premium of USD 5 to USD 6 a barrel to Middle East quotes for 0.5% sulphur diesel, the sources said. The cargoes for February arrival have been bought on a delivered basis.
Other than BPCL, counterpart Indian Oil Corp is also expected to award its tender to import 120,000 tonnes of Euro-IV compliant diesel. The refiners are importing the cleaner fuels before they embark on a massive launch of Euro-IV diesel and gasoline from April in India.
The rare demand from India had temporarily lifted the market last week when the refiners issued their tenders. However, sentiment almost immediately weakened as a persistent glut continued to pressure sellers. Diesel cracks fell to their lowest in more than a week at USD 7.51 a barrel on Friday, after it briefly reached a near three-month high at USD 8.19 a barrel on January.
Other than BPCL, counterpart Indian Oil Corp is also expected to award its tender to import 120,000 tonnes of Euro-IV compliant diesel. The refiners are importing the cleaner fuels before they embark on a massive launch of Euro-IV diesel and gasoline from April in India.
The rare demand from India had temporarily lifted the market last week when the refiners issued their tenders. However, sentiment almost immediately weakened as a persistent glut continued to pressure sellers. Diesel cracks fell to their lowest in more than a week at USD 7.51 a barrel on Friday, after it briefly reached a near three-month high at USD 8.19 a barrel on January.