NEW DELHI, Aug 13 (Reuters) - State-run Mangalore Refinery and Petrochemicals Ltd has bought its second Argentinian crude cargo this year, three trade sources with direct knowledge of the matter said on Wednesday.
A fall in Brent’s premium to Dubai to the lowest since July 2010 has opened the arbitrage window for crude from the North Sea, Africa and Latin America to flow to Asia.
MRPL has bought the 1-million-barrel cargo from trading firm Glencore at a discount of about $2.70 to dated Brent on a free-on-board basis for lifting in the second half of September through a tender, said the sources who are not authorised to speak to the media.
The is the second purchase of the grade by the state-run refiner, which normally buys West African sweet grades in its monthly spot tenders. MRPL is the only Indian company that has purchased the grade so far.
MRPL, which operates a 300,000 barrels per day refinery in Southern India, aims to buy as much as 40,000 bpd of Latin American grades in the current fiscal year that began on April 1, Vijay G Joshi, its refinery director said earlier this year.
Rising U.S. shale oil output is re-routing the flow of Algerian, Latin American, Canadian and West African crudes, which used to flow regularly to the United States.
India’s state-run refiners are snapping up Latin American oil after upgrading their plants, reaping the benefit of cheap prices for crudes that have lost their market in the United States to shale oil.
Escalante is a medium sweet crude with an API density of 24 degrees, extracted from the basin with the same name in southern Argentina by Pan American Energy, controlled by British BP. (Reporting by Nidhi Verma; Editing by Richard Pullin)