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What happened
Reliance Industries has successfully purchased 1 million barrels of heavy crude oil from Kuwait Petroleum Corporation (KPC). This acquisition is a response to unplanned maintenance at KPC's Al-Zour refinery, which has left some crude oil unsellable. The deal involves two shipments: one of 500,000 barrels of Kuwait Heavy Crude and another of Eocene crude, both scheduled for loading in early December. This purchase is significant as it follows Reliance's recent decision to halt oil purchases from Russia, prompted by U.S. sanctions against Russian oil producers Rosneft and Lukoil. Reliance has been actively sourcing crude oil from the Middle East and the Americas, having bought at least 12 million barrels of spot crude recently.
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Key insights
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1
Kuwait's refinery issues: Unplanned maintenance at KPC's Al-Zour refinery led to the sale of crude oil.
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2
Shift from Russian oil: Reliance halted Russian oil purchases due to U.S. sanctions.
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3
Significant crude acquisition: Reliance's purchase of 1 million barrels highlights its strategic sourcing.
Takeaways
Reliance's acquisition of crude oil from Kuwait reflects its adaptability in sourcing amid geopolitical challenges and supply chain disruptions.