India's IOC Buys New US Crude
Indian Oil Corporation (IOC), the country's largest refiner, has bought two new types of US crude for December delivery, as it tests different US grades, Reuters reports. Quantities purchased include 1M barrels of US Southern Green Canyon and 1M barrels of WTI Midland Crude. The move comes right after India received its first ever US oil shipment at Paradip port earlier in the month. IOC has reportedly issued another sour crude tender it purchase more oil for the same period.
The US has become a new source of crude for Asia since it lifted the ban on crude exports in late 2015. India joined a list of countries in the fourth quarter that seek to diversify their import sources by attracting US crude, as well as reduce their trade surplus with the US. Other Asian countries to have bought US crude since the lifting of the export ban include China, Hong Kong, Japan, South Korea, Malaysia, Singapore and Taiwan, while Asia amounted for 33% of total US crude exports in July.