Refiners in India have increased exports for prompt refined oil product cargoes amid weaker-than-expected domestic demand due to the national lockdown. However, the coronavirus pandemic also dragged overseas demand, resulting in spot tenders being awarded at steep discounts.
IOCL offered up to 64,000 tons of RON 92 gasoline, with the 41,000-42,000 tons of them will be loaded on April 5-10 from either Haldia or Paradip, shortly after the tender's award date of April 3. Another 21,000 -22,000 tons were set to be loaded on April 9-10 from Kandla, according to the tender document.
The period between the tender award and cargo loading usually averages three weeks. However, since the start of India's nationwide lockdown, the turnaround time has narrowed to two to three days. The exports of middle distillates also follow the same trend.
IOCL closed a tender for up to 62,000 tons of 10-ppm sulfur gasoil split on April 7. The shipments are due to be loaded over April 10-15 from Haldia and Paradip. The company also offered 25,000 tons of jet A-1 fuel for loading on April 8-9 from Paradip, with the tender's award date of April 7. BPCL also offered up to 40,000 tons of 10-ppm sulfur gasoil for April 6-8 loading, with the tender closing on April 1.
Despite increasing exports, spot tenders were awarded at significant discounts due to the lack of demand abroad. Nayara sold up to 60,000 tons of RON 92 gasoline for loading in mid-April at a discount of $4/barrel to the Singapore RON 92 gasoline benchmark prices. BPCL also sold gasoil shipments at a discount of $1.90/barrel to the Arab Gulf 10-ppm sulfur gasoil benchmark prices.
