Indian refiner Bharat Petroleum Corp (BPCL.NS) is still in talks with Russian oil major Rosneft (ROSN.MM) to buy oil under a term deal, its head of finance said, adding that discounts on Russian oil are narrowing.
“Yes, there were discussions happening with Rosneft but not yet concluded,” Vetsa Ramakrishna Gupta told an analysts’ conference after the company’s June quarter earnings report.
Reuters last month reported that BPCL is in talks to buy up to 6 million metric tons of Russian oil under a term deal with Rosneft.
Indian refiners have been snapping up discounted Russian oil since many other countries imposed sanctions on Moscow after its invasion of Ukraine. The discounts make Russian oil cheaper than similar grades from the Middle East.
But Gupta said discounts on Russian oil are shrinking compared to previous quarters.
Narrowing discounts amid tightening supply made Russian Urals oil prices for August loading jump above the $60 per barrel price cap, sources told Reuters last month.