(ET)
Indian Oil Corporation is exploring term deals with producers in the United States (US) for purchase of about a million tonnes of crude oil, a move that could turn the US into one of its regular suppliers and counterbalance traditional producers in the Gulf.
Indian refiners began buying US crude in the spot market last year and IOC’s term deal, when it happens, will be the first regular supply deal with the US. “We are already taking spot cargoes. Now we are exploring term deals for US crude,” said AK Sharma, director (finance) at IOC, India’s largest refiner. Term deals are usually annual contracts for purchase of a predetermined quantity at a price that varies with international rates during the period of contract.
