By John Lee.
India’s oil ministry has instructed state refiners Indian Oil Corp and Hindustan Petroleum Corp (HPCL) to buy eight million barrels of Basra crude oil for delivery in May and June.
The country is looking to build up its strategic petroleum reserve (SPR) at the current low market prices.
A source told Reuters that Basra oil suits the refineries on India’s east coast, adding that Iraq is “struggling to find buyers due to the deteriorating quality of Basra crude.”
The State Oil Marketing Organization (SOMO) is to offer both ‘light’ and ‘heavy’ grades of Basra crude from May.
(India image via Shutterstock)