Bharat Petroleum Corporation (BPCL) is set to float a four-month tender next week to buy 1 million barrels of US West Texas Intermediate (WTI) crude every month.
As per a report citing sources, the move aims to secure cheaper oil from the world’s top producer. The tender, which will be awarded for four months, is expected to begin deliveries in May or June 2025. This is not the first time BPCL has purchased US oil; the company awarded a similar tender to European major BP last year.
BPCL often buys US oil for its three refineries, which have a combined capacity to process 706,000 barrels of crude a day. India’s imports of US oil reached their highest level in over two years last month, as refiners sought alternative supplies after tighter US sanctions on Russian producers and shippers.
The US imposed fresh sanctions on Russian oil producers Gazprom Neft and Surgutneftegas, along with nearly 180 tankers from Russia’s so-called shadow fleet, on January 10. The move aims to reduce Moscow’s revenue, which Washington claims is being used to finance the war against Ukraine. Under these sanctions, Russian oil cargoes had to be shipped by February 27 to comply with the new restrictions.
As per cargo tracking agency Vortexa, India’s crude oil imports from Russia fell marginally to 1.41 million barrels per day (mbd) in February 2025, down from 1.49 mbd in January 2024. The country’s total crude imports in February stood at 4.77 mbd, remaining largely unchanged from 4.76 mbd in January. Vortexa anticipates a further decline in Russian crude imports in March and April, citing sanctions imposed by the US Office of Foreign Assets Control (OFAC) on January 10.