State run Bharat Petroleum Corp has bought only one of the four diesel cargoes it was seeking via tender for April delivery at a very high premium as traders instead target more lucrative sales to quake-hit Japan.
Trade sources familiar with the deal said that BPCL which was seeking around 120,000 tonnes of Euro III and Euro IV compliant diesel has bought a 33,000 tonnes parcel from Totsa the trading arm of French major Total at USD 9.60 a barrel premium to middle east quotes.
They said that the cargo comprising 18,000 tonnes of 340 ppm gasoil and 15,000 tonnes of 40 ppm diesel was for delivery at Chennai and Vizag ports during April 24 to 28. Asian gas oil fundamentals have surged this week, buoyed by expectations of higher Japanese demand for fuels to generate power in the wake of last week's devastating earthquake and tsunami.
One of the source said that "Like IOC, the response to BPCL's tender was not good. Traders are keen to sell to Japan, where they can make good money.”
Traders said that Indian Oil Corp is also in market seeking to import 310,000 tonnes of diesel for delivery in April ahead of planned shutdown at some refineries and local elections when demand for the fuel rises.
(Sourced from REUTERS)
